T.H.E. Insurance Company (T.H.E.), an AXA XL insurance company and a McGowan Allied Specialty Insurance partner, has been upgraded to A+ (Superior)/XV by AM Best.
This recent AM Best upgrade to A+ XV affirms the financial strength of AXA XL and its insurance companies like T.H.E., to keep their obligations to their clients in the amusement and entertainment segments, T.H.E. said in a statement.
The McGowan Companies entered into a joint venture with AXA XL to form McGowan Allied Specialty Insurance in February 2020. This joint venture brought together 35 years of collective industry expertise to provide insurance to amusement parks, arcades, bowling centers, carnivals, and more.
T.H.E. Insurance said the rating upgrade allows McGowan Allied Specialty Insurance to secure client relationships with major league sports, sanctioning bodies, and large spectator venues, most of which require higher solvency rating by third parties, such as A.M. Best, of their insurers.
Best affirmed the ratings of XL Bermuda and its property/casualty subsidiaries in late September, when it also issued the upgrade for T.H.E. Insurance Co. The upgraded rating reflects efforts to simplify the post-merger AXA XL organization, Best said.
As a result, T.H.E. has been further incorporated into the operations and financials of XL Bermuda Ltd, which affords it “more significant implicit and explicit support,” Best noted. As such, the credit profile of T.H.E. is now in line with the overall group’s credit profile.
“The ratings of XL reflect the organization’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management,” the Best notice stated.
T.H.E. Insurance Co. was acquired by then-insurer X.L. America Inc. in 2015.
T.H.E. Insurance Co. provides general liability, workers’ comp, inland marine, auto-liability, and certain property insurance to 3,000 clients in the amusement and entertainment industry, including carnivals, amusement parks, fairs and festivals, hot air balloons, fireworks, concessionaires, family entertainment centers and waterparks.
Source: T.H.E. Insurance, AM Best
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