OLDWICK, N.J.--(BUSINESS WIRE)--
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 Company (Trisura Specialty) (Oklahoma City, OK). The outlook assigned to these Credit Ratings (ratings) 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%-10% 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. [TSX:TSU]. 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.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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