A.M. Best Affirms Ratings of Torus Specialty Insurance Company and Torus National Insurance Company
8th November 2011
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of “a-” of Torus Specialty Insurance Company (Torus Specialty) and Torus National Insurance Company (Torus National). Both companies are domiciled in Wilmington, DE and are wholly owned subsidiaries of their ultimate parent, Torus Insurance Holdings Limited (Torus) (Bermuda). The outlook for all ratings is stable.
These ratings are based upon A.M. Best’s group rating methodology and take into consideration the roles and strategic importance of Torus Specialty and Torus National to Torus’ overall U.S. strategy. The ratings also reflect the explicit support provided through substantial quota share reinsurance of Torus Specialty and Torus National’s net business by their U.K. based affiliate, Torus Insurance (UK) Limited (Torus UK). Additionally, Torus UK provides an aggregate stop loss agreement to Torus Specialty and Torus National. The ratings also reflect the implied support of future parental commitment.
Torus Specialty and Torus National maintain a strong stand-alone capitalization, which is driven by low underwriting leverage, negligible investment leverage and capital contributions from Torus. A.M. Best will closely monitor the operating performance of these relatively new companies given the execution risk to achieve business projections and the competitive market.