Iron Trades Insurance Co. had its long-term counterparty credit and insurer FSR raised by to “A+” from “A-.” The outlook is stable.
The decision was based on support from ITIC’s parent, QBE Insurance Group Ltd., in the form of a net-worth maintenance agreement.
Under the terms of the agreement, QBE has undertaken to see that while the agreement is effective, ITIC’s capital will stay at a prudent level; that ITIC will maintain sufficient funds to meet maturing obligations at all times; and that ITIC will remain a wholly owned subsidiary. ITIC retains its positive stand-alone profile and its strategic importance to the QBE group.
ITIC’s stand-alone profile is based on very strong capitalization, good niche positioning in employers’ liability insurance, and good prospective operating performance in this sector.
The positive factors are somewhat offset by the company’s lack of geographic or product diversity, and the relatively short earnings record in the company’s substantially restructured form.
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