|[November 16, 2012]
A.M. Best Affirms Ratings of Torus Specialty Insurance Company and Torus National Insurance Company
OLDWICK, N.J. --(Business Wire)--
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 criteria "Rating Members of
Insurance Groups" and take into consideration the roles and strategic
importance of Torus Specialty and Torus National to Torus' overall U.S.
strategy. In addition, the ratings 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). Furthermore, Torus UK
provides aggregate stop loss protection to Torus Specialty and Torus
National. The ratings also acknowledge the implied support of future
Since the majority of its business is ceded to its U.K. affiliate, Torus
Specialty and Torus National contine to maintain strong stand-alone
capitalization, which is largely driven by their low net underwriting
A.M. Best will continue to closely monitor the operating performance of
these relatively new companies that commenced business in 2009. As Torus
Specialty and Torus National continue to gain economies of scale via
growth, a critical component to maintaining their ratings will be
management's ability to execute and generate profits in spite of the
competitive market conditions and economic challenges that currently
exist. Although uncertain as to the ultimate outcome, these ratings also
consider Hurricane Sandy losses, which are expected to be minimal from
both an earnings and capital perspective. Based on their group ratings,
any future rating actions for Torus Specialty and Torus National will
likely be in accordance with any future rating actions on Torus.
Factors that may lead to negative rating actions on Torus Specialty and
Torus National could result from their continued sub-par operating
results, a material deterioration in their stand-alone risk-adjusted
capitalization and/or any lessening of support (implied or explicit)
provided by Torus.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a
comprehensive explanation of A.M. Best's rating process and highlights
the different rating criteria employed in the rating process. Key
criteria utilized include: "Rating New Company Formations." Best's
Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS
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