Tuesday, May 21, 2024

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SGS Bermuda captive receives ‘Excellent’ rating

AM Best has affirmed the financial strength rating of ‘A’ (excellent) and the long-term issuer credit rating of “a” (excellent) of Bermuda-domiciled Transmonde Services Insurance Company Limited. The outlook for the ratings is stable.

Transmonde is a single parent captive owned by Switzerland headquartered SGS SA, an independent inspection, certification, testing verification and training services company.

Transmonde provides professional, property, cyber, general and pollution liability coverages to subsidiaries of SGS SA.

The ratings reflect Transmonde’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

Partially offsetting these factors are Transmonde’s high retentions and concentration in liability lines with significant loss severity potential, though the company has experienced favourable loss experience.

Transmonde has maintained conservative underwriting leverage ratios, as surplus has remained strong to support its business.

The captive has a history of conservatively distributing excess capital back to SGS.

“The company has posted low loss and loss adjustment ratios, which reflect SGS’ robust and effective risk management,” AM Best said.

“Its relatively high per-occurrence retentions are mitigated by significant deductibles and conservative reserving practices.”