In a joint ratings announcement A.M. Best Co. said it had downgraded the financial strength rating to “A-” (Excellent) from “A” (Excellent) of Travelers/St.Paul subsidiary Gulf Insurance Group (See related article in “National”), and has upgraded the financial strength rating to “A+” (Superior) from “A” (Excellent) of Travelers Casualty and Surety of Europe, Limited (TC&S Europe), which is based in Gloucester, U.K. Both ratings have been removed from under review with developing implications and assigned stable rating outlooks.
The rating actions “contemplate the finalization of an unlimited financial guaranty provided by The Travelers Indemnity Company (Travelers Indemnity), the lead company of the Travelers Property Casualty Pool, to Gulf Insurance Company (Gulf Insurance), the lead company of Gulf,” said Best.
Best indicated that it had upgraded TC&S Europe’s rating “based on the company’s 100 percent quota share reinsurance agreement with Travelers Casualty and Surety of America, which currently has a financial strength rating of ‘A+’ (Superior) with a stable outlook. In addition, all prior year obligations of TC&S Europe were previously assumed by Gulf Insurance. Those assumed obligations of Gulf Insurance are expected to be covered by the guaranty provided by Travelers Indemnity. “
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