A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Trisura Specialty Insurance Co. (Trisura Specialty), based in Oklahoma City. The ratings outlook is stable.
Trisura Specialty is a newly formed U.S. property/casualty insurance company specializing in sourcing small- to medium-size market U.S. risks through program administrators. Trisura Specialty will generally retain 5 percent to 10 percent of the business and cede the rest to international reinsurance markets.
The ratings reflect Trisura Specialty’s adequate risk-adjusted capitalization, strong underwriting controls, targeted business plan, and access to capital through its publicly traded Canadian parent, Trisura Group Ltd.
Partially offsetting these positive rating factors are its limited business profile as a startup operation and potential execution risk in implementing its business plan.
The ratings could be impacted negatively if Trisura Specialty is unable to utilize existing relationships to obtain favorable business or quality reinsurers to the extent they originally planned, ultimately resulting in the deterioration of risk-adjusted capitalization.
In addition, negative rating pressure can develop if the company’s operations indicate an inability to manage growth and exposure, loses desirable business, or performance metrics decline due to market volatility.
Positive rating actions may be caused by sustained operating performance and balance sheet strengthening that outperforms peers. Additionally, incremental financial support by Trisura Group Ltd. may provide upward movement to the operating company’s rating.
Source: A.M. Best
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