AM Best Affirms Credit Ratings of Transatlantic Reinsurance Company and Alleghany Corporation

AM 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 (New York, NY) and its subsidiaries (collectively referred to as TransRe). In addition, AM 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. Alleghany and Transatlantic Holdings, Inc. are headquartered in New York, NY.

Concurrently, AM 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).

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

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

TransRe continues to maintain a robust business profile with a highly diversified book of business in terms of geography and product offerings. TransRe also maintains the strongest level of risk-adjusted capitalization even under stressed scenarios and the quality of capital is considered a positive for the ratings. TransRe consistently has delivered solid results over the reinsurance cycle, and although it remains exposed to catastrophic events worldwide, it is expected to produce favorable earnings driven by underwriting income and complemented by investment income.

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

RSUI continues to maintain an exceptional track record of strong operating performance driven by solid underwriting results that have consistently outperformed the industry. The group has been able to successfully remain relevant in a highly competitive environment and AM Best expects that RSUI will continue to maintain a strong position in the market and will continue to deliver strong results and maintain the strongest level of risk-adjusted capitalization.