OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Besthas affirmed the financial strength rating of
A-(Excellent) and issuer credit rating of “a-” of Gateway Rivers
Insurance Company(Gateway) (Burlington, VT). The outlook for both
ratings is stable.
The ratings and outlook reflect Gateway’s strong capitalization and
conservative operating strategy. The ratings also consider the company’s
critical role and favorable profile as part of the AT&T Inc. [NYSE: T]
organization, as well as its excellent operating performance during the
past five years, providing insurance coverage to subsidiaries of AT&T
Inc. for certain property/casualty risks.
Partially offsetting these positive rating factors are Gateway’s
relatively large limits to its property lines of business. Nevertheless,
A.M. Best recognizes the substantial financial resources of the AT&T
A.M. Best views Gateway’s management and corporate strategy as a major
factor that strengthens its ratings, given its conservative
underwriting, operational goals and transparency. A.M. Best believes
that Gateway’s enterprise risk management practices are strong given
their impact on the company’s conservative risk culture and defined risk
controls, in addition to optimizing its capital and surplus. Other
factors A.M. Best considered in the rating process include, but are not
limited to, the diversification in Gateway’s line of business and
geography, as well as the support and commitment of its parent and the
A.M. Best expects Gateway’s future operating performance to be stable
but strong, and the stable earnings profile should further support the
efforts to control its growth and business writings, which are
consistent with its capital and surplus position.
Gateway’s ratings are not expected to be upgraded and/or its outlook
revised within the next 12-24 months as its operating performance and
capital position already have been considered in the rating process.
A.M. Best could downgrade the company’s ratings and/or revise the
outlook if its Best’s Capital Adequacy Ratio (BCAR) score declines,
operating performance and risk profile deteriorate, insured losses
deplete capital, significant changes and turnover occur in its
management team and/or risk management controls and tolerances, or its
parent’s ratings deteriorate.
A.M. Best remains the leading rating agency of alternative risk transfer
entities, with more than 200 such vehicles rated in the United States
and throughout the world. For current Best’s Credit Ratings and
independent data on the captive and alternative risk transfer insurance
market, please visit www.ambest.com/captive.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world’s oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.
Fred Eslami,908-439-2200, ext. 5406
Chirico, CPA, 908-439-2200, ext. 5087
Morrow, 908-439-2200, ext. 5378
Senior Manager, Public
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Source: A.M. Best Co.