Travelers and most of its subsidiaries saw their already stellar financial strength ratings from A.M. Best get even better. This was based, in part, on the insurer’s ability to generate solid earnings even as low interest rates and an increase in weather-related losses battered some rivals.
A.M. Best said it upgraded from “A+” (Superior) to “A++” (Superior) its financial strength rating for the property/casualty subsidiaries of The Travelers Companies, its affiliate Travelers Casualty and Surety Company of America, and TCSA affiliates Travelers Casualty and Surety Company of Europe Ltd. and Travelers Insurance Company of Canada.
As well, A.M. Best affirmed the financial strength rating of “A” for Traveler’s Premier Insurance Company of Massachusetts. First Floridian Auto and Home Insurance Company, also a Travelers property, had its “A-” rating affirmed as well.
The Travelers good news is even more far-reaching than that. In a related matter, A.M. Best assigned the rating of “A” (Excellent) to The Dominion of Canada General Insurance Company, reflecting, in part, the financial support it gets from Travelers, its new corporate parent. Good risk-adjusted capitalization, excellent brand recognition and an established Canadian market presence also helped, A.M. Best said.
Regarding Travelers proper, A.M. Best said it upgraded Travelers’ ratings due to its “solid risk-adjusted capitalization, trend of favorable operating and underwriting results, excellent market profile in commercial and personal lines (largely distributed through independent agents) and effective management team.”
A.M. Best said the ratings improvements additionally stem from the insurer’s “proactive and comprehensive risk management, underwriting and financial discipline, relatively conservative investment portfolio, geographic and product diversification and enhanced technology and internal information systems, which have improved underwriting effectiveness and ability to service agents and customers in both commercial and personal lines.”
As well, A.M. Best credited Travelers’ products, “industry leading data and analytics” and leading position within its distribution network” for helping to drive good numbers.
Additionally, Travelers and its subsidiaries also experienced wide ratings upgrades or ratings affirmations regarding issuer credit and senior debt ratings.
Travelers started off 2014 well, producing net and operating income of more than $1 billion during the first quarter, 17 percent higher than the previous year. Those gains stem, in part, from Travelers’ Dominion acquisition.
Travelers wrote nearly $5.9 billion in net premium during the quarter, 5 percent higher than the same period in 2013.
Its combined ratio for the quarter hit 85.7, 2.8 points lower than the previous year, thanks to better underwriting margins and reserve development.
Source: A.M. Best