A recent credit ratings report from AM Best has revealed that two major shipping clubs are considering a merger.

The United Kingdom Mutual Steam Ship Assurance Association Club is looking at combining with the TT Club consisting of Through Transport Mutual Insurance Association (Bermuda) and its subsidiaries: TT Club Mutual Insurance and TT Club Mutual Insurance NV.

The firms said their ambitions closely align, and a merger would accelerate progress towards their shared strategic goals.

AM Best gave the TT Club a financial strength rating of A- (excellent), and an unchanged long term issuer credit rating of “a-” (excellent).

The credit ratings agency noted that the discussions are at an early stage and will continue over the coming months.

AM Best said it would continue to monitor developments and analyse the impact of the potential merger on the credit ratings of TT Club when the structure of the transaction is finalised over the next few months.