“A.M. Best Withdraws Ratings of Travelers Auto Insurance Co. of New Jersey and Travelers of New Jersey Group Due to ...” |
| Posted: 30 Nov 2010 09:24 AM PST OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has withdrawn the financial strength ratings (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of Travelers Auto Insurance Co. of New Jersey (TAIC-NJ) (Hartford, CT) and Travelers of New Jersey Group and has assigned an NR-5 (Not Formally Followed) to the FSRs and an "nr" to the ICRs.
Effective November 1, 2010, TAIC-NJ was merged with and into an affiliate, Fidelity and Guaranty Insurance Underwriters, Inc. (Fidelity) (Waukesha, WI). TAIC-NJ and First Trenton Indemnity Company (First Trenton) (Hartford, CT) were the sole members of Travelers of New Jersey Group. The personal lines business formerly written by TAIC-NJ will now be directly written by Fidelity. This book of business will continue to be reinsured to First Trenton through a 100% quota share agreement. Consequently, A.M. Best has affirmed the FSR of A (Excellent) and ICR of "a" with a stable outlook for First Trenton, which is now rated on a stand-alone basis. First Trenton's ratings reflect its adequate risk-adjusted capitalization, historically strong operating performance and the benefits derived from its local market presence as a provider of personal lines coverages in New Jersey. The ratings also reflect the operational support and financial flexibility afforded by Travelers Group and its ultimate parent, The Travelers Companies, Inc. [NYSE: TRV]. These positive rating factors are partly offset by First Trenton's geographic concentration within one state, which exposes its capital and earnings to regulatory mandates, weather related losses and competitive pressures as evidenced by the declines in the company's underwriting and operating profitability in recent years due to challenging market dynamics in the New Jersey private passenger auto segment. All entities referenced above are wholly-owned subsidiaries of The Travelers Companies, Inc. The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include "Understanding BCAR for Property/Casualty Insurers", "Natural Catastrophe Stress Test Methodology", "Rating Members of Insurance Groups", "Risk Management and the Rating Process for Insurance Companies." Methodologies 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 © 2010 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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