Rating agency A.M. Best has downgraded the financial strength rating to B+ (very good) from A- (excellent) of Through Transport Mutual Insurance Association (TT Club), Bermuda, and assigned a negative outlook.
The agency said the downgrade "reflects the significant reduction in surplus as a consequence of the reserve strengthening undertaken in 2001 and the impact of this on the Club's financial performance in the short to medium term."
Among its expectations for the club's future, A.M. Best listed a gradual increase in capital and surplus, improving underwriting profitability and the unlikelihood of the need for additional major reserve strengthening exercises.
