A.M. Best Co. announced that it has affirmed the A-(Excellent) financial strength ratings of Denmark’s Tryg-Baltica Insurance, International Insurance Company (TBI), and its London-based subsidiary Tryg-Baltica International (UK) Limited (TBI-UK). The rating agency also said that it has removed the “under review” status of both ratings and assigned them a negative outlook.
“The ratings reflect the restored consolidated risk-based capital base, improving operating performance and excellent domestic business position both in Denmark and the UK. A.M. Best regards TBI-UK as a core subsidiary of TBI,” said the bulletin.
“Offsetting factors include the effect of potential further losses from the recently ceased energy account and challenges associated with TBI’s recent change in ownership,” it continued. Best also noted that TBI-UK “enhances TBI’s international presence, providing 56.5% of gross premium income in 2001.”
The report said that TBI’s capital had been adequately restored “to a level that is commensurate with the current rating” by an injection of DKr 250 million ($30 million) from its immediate parent, Tryg Forsikring, and a further DKr 200 million ($ 26.4 million) this month from Tryg i Danmark, the new ultimate parent.
Best indicated that it “believes the current consolidated risk-adjusted capital base will support the expected business growth for the next two years,” and that the companies’ operating performance would improve following “a comprehensive portfolio restructuring on both operations,” that has enhanced “underwriting discipline and management controls.”
The rating agency believes that “TBI is well positioned to benefit from improved rates in the marine, aviation and property sectors where TBI has a leading position.”
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