A.M. Best Assigns Ratings to White Mountain Insurance Company
A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-”to White Mountain Insurance Company (White Mountain) (Burlington, VT). The outlook assigned to both ratings is stable.
The ratings reflect White Mountain’s excellent capitalization, solid underwriting and overall operating performance and conservative operating strategy. The rating also considers the company’s strategic role as a single parent captive of Tyco International Ltd. (TYC).
Partially offsetting the positive rating factors are the company’s high net and gross underwriting exposures and the variability in its business volumes and financial measures, which reflect in large part the major changes implemented by Tyco during White Mountain’s relatively short history.
The company’s business volumes and financial ratios have fluctuated over its five-year history, but A.M. Best expects more stability in results as its business volumes stabilize. White Mountain’s exposures decreased significantly as a result of Tyco’s separation into three independent companies in 2007. White Mountain now only insures the risks of one of the companies, Tyco International, and it is a critical component of the group’s risk management and financing.
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