|[February 15, 2013]
A.M. Best Affirms the Ratings of Gateway Rivers Insurance Company
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of
A-(Excellent) and issuer credit rating of "a-" of Gateway (News - Alert) Rivers
Insurance Company (Gateway) (Burlington, VT). The outlook to both
ratings is stable.
The ratings and outlook reflect Gateway's strong capitalization and
conservative operating strategy. The ratings also consider the company's
critical role and favorable profile as part of the AT&T (News - Alert) Inc. [NYSE: T]
organization, as well as its excellent operating performance during the
past five years, providing insurance coverage to subsidiaries of AT&T
Inc. for certain property/casualty risks.
Partially offsetting these positive rating factors are Gateway's
relatively large limits to its general and product liabilities as well
as property lines of business. Nevertheless, A.M. Best recognizes the
substantial financial resources of the AT&T Inc. organization.
A.M. Best views Gateway's management and corporate strategy as a major
factor that strengthens its ratings, given the company's conservative
underwriting, operational goals and transparency. A.M. Best also views
Gateway's enterprise risk management practices as strong given their
impact on the company's conservative risk culture, defined risk controls
as well as providing optimization of its capital and surplus. Other
factors A.M. Best considered in the rating process include, but are not
limited to, the diversification in Gateway's line of busness and
geography, as well as the support and commitment of the parent and the
A.M. Best expects Gateway's future operating performance to be stable
but strong, and the stable earnings profile should further support the
efforts to control its growth and business writings, which are
consistent with its capital and surplus position.
Gateway's ratings and outlook are not expected to be upgraded and/or
revised within the next 12-24 months as its operating performance and
capital position already have been considered in the ratings process.
A.M. Best could downgrade Gateway's ratings and/or revise the outlook if
its Best's Capital Adequacy Ratio (BCAR) score declines, operating
performance and risk profile deteriorate, insured losses deplete capital
or significant changes and turnover occur in its management team and/or
risk management controls and tolerances, or its parent's ratings
A.M. Best remains the leading rating agency of alternative risk transfer
entities, with more than 200 such vehicles rated in the United States
and throughout the world.
For current Best's Credit Ratings and independent data on the captive
and alternative insurance market, please visit www.ambest.com/captive.
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 contains the different rating criteria
employed in the rating process. Key criteria utilized include: "Risk
Management and the Rating Process for Insurance Companies";
"Understanding BCAR for Property/Casualty Insurers"; "The Treatment of
Terrorism Risk in the Rating Evaluation"; "Evaluating Non-Insurance
Ultimate Parents"; and "Alternative Risk Transfer (ART)." 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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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