AM Best has affirmed the Financial Strength Rating (FSR)
of A++ (Superior) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “aa+” (Superior) of the main subsidiaries of The
Travelers Companies, Inc. (TRV) (headquartered in New York, NY)
[NYSE: TRV], collectively known as Travelers Group (Travelers). In
addition, AM Best has affirmed the FSR of A++ (Superior) and the
Long-Term ICRs of “aa+” (Superior) of Travelers Casualty and Surety
Company of America (TCSA) (Hartford, CT) and Travelers Insurance
Company of Canada (TICC) (Toronto, Ontario, Canada). Concurrently,
AM Best has affirmed the FSR of A- (Excellent) and the Long-Term
ICR of “a-” (Excellent) of First Floridian Auto and Home Insurance
Company (First Floridian) (Tampa, FL).
AM Best also has affirmed the Long-Term ICRs and the Long-Term
Issue Credit Ratings (Long-Term IR) of “a+” (Excellent) of TRV and
its two wholly owned downstream holding companies, Travelers
Property Casualty Corp. and Travelers Insurance Group Holdings Inc.
(both headquartered in Hartford, CT). All outstanding securities
issued by the two downstream holding companies are guaranteed by
TRV. At the same time, AM Best has affirmed all other Long-Term IRs
and Short-Term Issue Credit Ratings (Short-Term IR) guaranteed by
TRV, as well as TRV’s indicative Long-Term IRs. The outlook of
these Credit Ratings (ratings) is stable.
Lastly, AM Best has affirmed the FSR of A (Excellent) and the
Long-Term ICR of “a” (Excellent) of The Dominion of Canada General
Insurance Company (Dominion) (Toronto, Ontario, Canada). The
outlook of the FSR is stable while the outlook of the Long-Term ICR
is positive.
The ratings of Travelers reflect the group’s balance sheet
strength, which AM Best assesses as strongest, as well as its very
strong operating performance, favorable business profile and
appropriate enterprise risk management (ERM).
Travelers’ strongest balance sheet strength assessment is
anchored by its strongest risk-adjusted capitalization, as measured
by Best’s Capital Adequacy Ratio (BCAR). Additionally, the balance
sheet strength reflects the group’s historically strong loss
reserve position, the benefits derived from its conservative and
well-managed investment portfolio, the use of a comprehensive
reinsurance program, utilizing high quality reinsurance partners,
and the additional financial flexibility available through its
ultimate parent, TRV.
Travelers’ very strong operating performance reflects
consistently profitable results driven by strong underwriting and
investment results. Travelers has reported positive underwriting
income in each of the most recent 10 years.
Travelers continues to maintain leading positions in its core
markets and is the second-largest U.S. commercial lines insurer and
one of the top 10 largest personal lines insurers. Overall, the
group is the sixth-largest property/casualty (P/C) writer in the
United States. Travelers maintains a broad spread of risk in that
it offers a wide array of P/C coverages spread geographically in
all 50 states, the District of Columbia, Canada, England, Ireland,
Guam, Puerto Rico, the U.S. Virgin Islands and the Northern Mariana
Islands. Additionally, Travelers strong distribution and
underwriting capabilities continue to be enhanced by a continued
focus on innovation throughout the enterprise.
The ratings of TCSA reflect its balance sheet strength, which AM
Best assesses as strongest, as well as its very strong operating
performance, favorable business profile and appropriate ERM.
The ratings of TICC reflect its balance sheet strength, which AM
Best assesses as strongest, as well as its strong operating
performance, neutral business profile and appropriate ERM. The
ratings also reflect the implicit support it receives from its
ultimate parent, TRV.
The ratings of First Floridian reflect its balance sheet
strength, which AM Best assesses as very strong, as well as its
marginal operating performance, limited business profile and
appropriate ERM. The ratings also reflect the implicit support it
receives from its ultimate parent, TRV.
The ratings of Dominion reflect its balance sheet strength,
which AM Best assesses as strongest, as well as its marginal
operating performance, neutral business profile and appropriate
ERM. The ratings also reflect the implicit support it receives from
its ultimate parent, TRV. While there has been some volatility in
the latter half of 2023 tied to vehicle thefts experienced in
Canada as well as increased weather-related losses, Dominion has
reported some moderation in the first half of 2024. Additionally,
the company has taken some pricing actions to offset volatility of
results. The positive Long-Term ICR outlook reflects the company’s
trends of profitable operating performance, as evidenced by
positive net income in each of the most recent three years with
loss ratios that compare favorably with those of the industry, as
well as expectations of continued improvement in operating results
in 2024. Results have been relatively in line with industry
peers.
A complete listing of The Travelers Companies, Inc.’s FSRs,
Long-Term ICRs and Long- and Short-Term IRs also is available.
This press release relates to Credit Ratings that have been
published on AM 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 AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
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