Ratings agency A.M. Best Co. has affirmed the A minus (Excellent) financial strength rating of Through Transport Mutual Insurance Association Ltd., Bermuda, and its subsidiary, Through Transport Mutual Insurance Association (EurAsia) Ltd., London. Collectively, the companies trade as the TT Club.

The affirmation is based on the Club's excellent financial strength and its improved operating performance, according to Best.

The rating also considers the benefits the Club receives from its mutual status and recognises its "innovative diversification strategy", which has further developed in the most recent year. Offsetting factors include the competitive market in which the Club operates and the further fall in free reserves that was reported at the end of 2000, Best said in a release.

The solvency ratio net premium written to capital and surplus at 1.3x is viewed by A.M. Best as adequate. In the past five years, this measure has averaged 1.2x.

The most recent ratio sufficiently supports current business volumes, and financial strength measures are enhanced additionally through a conservative investment strategy with a well-diversified, liquid portfolio primarily held in fixed-interest securities and equities, the report said yesterday.

The Club's balance sheet also is protected by a comprehensive reinsurance programme, complemented by good-quality reinsurance security.

Best said the operating performance has improved during 2000, despite continuing competitive pressures. Both gross and net premiums written reported growth 13.7 percent and 15.7 percent, respectively - and 221 new members joined the Club during this period.