A.M. Best Affirms Credit Ratings of Transatlantic Reinsurance Company and Alleghany Corporation

A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Transatlantic Reinsurance Company and its subsidiaries (collectively referred to as TransRe). In addition, A.M. Best has affirmed the Long-Term ICRs and the Long-Term Issue Credit Ratings (Long-Term IRs) of “a-” of Alleghany Corporation (Alleghany) [NYSE: Y] and Transatlantic Holdings Inc. TransRe and Alleghany are headquartered in New York, NY.

Concurrently, A.M. Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” of RSUI Indemnity Company and its reinsured subsidiaries, collectively referred to as RSUI Group (RSUI) (headquartered in Atlanta, GA).

A.M. Best also has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” of Capitol Indemnity Corporation and its two subsidiaries, which operate under a pooling agreement, collectively referred to as CapSpecialty Insurance Group (CapSpecialty) (headquartered in Middleton, WI).

The outlook for each of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.)

The ratings reflect TransRe’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management (ERM).

TransRe’s maintains a well-regarded business profile attributed to its book of business that is highly diversified by product and geography. TransRe also maintains favorable levels of risk-adjusted capitalization even under stressed scenarios and quality of capital is considered a positive rating aspect. Furthermore, TransRe has had consistent favorable prior year reserve releases on both a calendar and accident year basis in each of the past 10 years. While its operating performance is in line with peers, A.M. Best continues to expect that TransRe will produce favorable earnings, driven by underwriting income, with lower volatility relative to its peers over the course of the full cycle.

The ratings of RSUI reflect the group’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate ERM.

RSUI continues to support its rating with the strongest levels of risk-adjusted capitalization and an excellent track record of strong operating performance supported by underwriting results that have consistently outperformed the industry. While RSUI operates in a highly competitive environment with many large, well-established players, it has successfully carved out a favorable business profile with a focus on a wholesale distribution network.