TT Club’s Rating Re-affirmed at A- (Excellent) by AM Best

Despite some weakening last year of risk-adjusted capitalisation noted by AM Best, the rating decision reflects the opinion that TT Club will maintain a strong capital position both this year and next.  The Club has a comprehensive catastrophe reinsurance programme with extensive vertical and horizontal protection.  

Commenting on the rating announcement, Paul Neagle, Chief Executive of TT said, “We are delighted that in a highly competitive market our financial strength continues to meet the needs of Members, brokers and outside authorities alike."

On investments Neagle noted, “While TT Club’s investment portfolio is not directly exposed to losses arising from sub-prime debt, our conservative investment strategy has been and remains sensitive to further changes in the interest rate environment.” 

Evidence of the success of the investment strategy was presented at TT’s 2007 financial results press conference, which showed an investment return last year of USD 23.1 million, a result that only just fell short of the record high USD 25.2 million returned in 2006.  

The Club is also taking steps to improve its underwriting performance including a focus on higher deductibles, tight cost management and increased use of its loss prevention programme.  

Addressing this issue Neagle said, “Concerns remain high over the rising claims in sectors such as bodily injury and handling equipment.  Although the surge in claims experienced in 2006 has not re-occurred, we remain vigilant in taking action on loss prevention and deductibles to ensure that the Club’s operating performance is maintained.”