AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Bermudian-based Through Transport Mutual Insurance Association Limited and its subsidiary, TT Club Mutual Insurance Limited of the United Kingdom.

TTB and TTI collectively trade as TT Club.

The outlook of these credit ratings is stable.

The ratings reflect TTB’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings of TTI reflect its strategic importance to TTB as the source of the majority of the group’s insurance business and the support that it receives from TTB in the form of comprehensive reinsurance protection.

TTB’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, which is well in excess of the minimum required for the strongest assessment level.

The company’s balance sheet strength also benefits from a relatively conservative investment strategy.

However, AM Best views TTB’s dependence on reinsurance, used to manage the group’s capacity, as an offsetting balance sheet strength assessment factor. The associated risks are mitigated partially by the high credit quality of its reinsurance partners, many of which TT Club has long-established relationships with.

TTB’s adequate operating performance is demonstrated by a five-year (2018-2022) weighted average return-on-equity ratio of 5.7 per cent.

The company’s earnings are underpinned by profitable underwriting results, demonstrated by a five-year weighted average combined ratio of 96.5 per cent (as calculated by AM Best). In addition, the company’s overall earnings are supported by modest investment returns.

TT Club is a specialist mutual insurance organisation operating in the international transport and logistics industry. It offers property and liability risk cover for port, ship and logistics operators, and provides loss prevention and risk-management services to its members.

The mutual has a strong position in its niche market, which is highlighted by its excellent member retention and supported by its global presence.

However, AM Best considers TTB’s business profile to be limited, owing to its relatively small size and concentration by line of business.