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A.M. Best Affirms Ratings of Transportation Property & Casualty Company Inc CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., Nov. 4, 2008—A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Transportation Property & Casualty Company Inc (TPCC) (British Columbia, Canada). The outlook for both ratings is stable. These ratings are based on TPCC’s excellent capitalization and operating performance and its favorable profile as part of the South Coast British Columbia Transportation Authority (SCBCTA) and BC Transit. Partially offsetting these positive rating factors are the company’s relatively small scale of operations and dependence on reinsurance to participate in its policyholders’ high excess coverage limits. TPCC is owned by the SCBCTA (90%) and BC Transit (10%), which are public transportation authorities in the Canadian province of British Columbia. TPCC is a sophisticated captive insurance company, which provides primary insurance coverage solely to these shareholders. The captive also participates in excess liability and property insurance agreements for its shareholders; however, it cedes 100% of these participations to well-rated reinsurers. TPCC has demonstrated its usefulness and effectiveness to the transportation authorities over many years by providing them flexibility for insurance program structuring and substantial insurance cost efficiencies. It is an integral part of these entities’ existing projects and future planning. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visitwww.ambest.com/captive. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. ### |
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