A.M. Best Affirms Ratings of Torus Specialty Insurance Company and Torus National Insurance Company

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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 group rating methodology and take into consideration the roles and strategic importance of Torus Specialty and Torus National to Torus’ overall U.S. strategy. The ratings also 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). Additionally, Torus UK provides an aggregate stop loss agreement to Torus Specialty and Torus National. The ratings also reflect the implied support of future parental commitment.

Torus Specialty and Torus National maintain a strong stand-alone capitalization, which is driven by low underwriting leverage, negligible investment leverage and capital contributions from Torus. A.M. Best will closely monitor the operating performance of these relatively new companies given the execution risk to achieve business projections and the competitive market.

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: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Natural Catastrophe Stress Test Methodology”; “Rating New Company Formations”; and “Rating Members of Insurance Groups.” 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.

CONTACT:

A.M. Best Co.
Greg Williams
Senior Financial Analyst
908-439-2200, ext. 5815
greg.williams@ambest.com
or
Joseph Roethel
Assistant Vice President
908-439-2200, ext. 5630
joseph.roethel@ambest.com
or
Carole Lovell
Public Relations Associate
908-439-2200, ext. 5445
carole.lovell@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com