AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of T.H.E. Insurance Company

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has removed from under review with developing
implications and affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-” of T.H.E.
Insurance Company (T.H.E.) (New Orleans, LA). The outlook assigned to
these Credit Ratings (ratings) is stable.

The ratings reflect T.H.E.’s balance sheet strength, which AM Best
categorizes as strong, as well as its marginal operating performance,
limited business profile and appropriate enterprise risk management
(ERM). Additionally, the company’s ratings benefit from the financial
support provided by the XL group, which became part of AXA S.A.
following completion of the acquisition in September 2018.

T.H.E.’s risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), is categorized as strong, and AM Best expects it
to remain at a similar level going forward. Due to material reserves
strengthening, the company reported high combined ratios of 139.3% and
142.7% in 2016 and 2017, respectively. For the first nine months of
2018, T.H.E. generated an underwriting profit of USD 5.3 million and a
combined ratio of 80.6%, and AM Best expects the company to return to
profitability for the full year. T.H.E. provides property/casualty
insurance coverage for the amusement and entertainment industry, and its
ERM is centralized at the group level.

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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best’s Credit Ratings
. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases

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Filippo Novella
Financial Analyst
+1 908 439
2200, ext. 5486

Mariza Costa
Senior Financial Analyst
+1 908
439 2200, ext. 5154

Christopher Sharkey
Manager, Public Relations
908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644

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