AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' of
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect CTIM's balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the support the company receives from its parent,
CTIM's risk-adjusted capitalization continued to improve in 2019, mainly driven by organic growth in the company's capital through profit retention, as well as the settlement of large claims and reinsurance recoverables related to prior accident years. The company's investment strategy remains conservative with the majority of the investment portfolio allocated in low risk assets, including cash and bonds. CTIM's underwriting and investment portfolio continues to generate profit and support the company's capital growth. The company's loss ratio has remained low over the past two years, partially benefiting from favorable reserve movements, while its operating expenses are broadly stable. CTIM's investment portfolio remains supportive of the company's overall operating performance by delivering a stable stream of investment income. CTIM maintains a leading position in
Offsetting rating factors are CTIM's geographic concentration in
While positive rating actions are unlikely in the near term, negative rating actions could occur if there is a significant deterioration in the company's operating performance, a material decline in its risk-adjusted capitalization or a substantial loss of its market share in
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
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