AM Best Assigns Credit Ratings to Torreyana Insurance Company, Inc.
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a" (Excellent) to Torreyana Insurance Company, Inc. (TIC) (Burlington, VT). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect TIC's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings also reflect Torreyana's function as the only captive insurer for Vertex Pharmaceuticals Incorporated (Vertex) (NASDAQ:VRTX), a global pharmaceutical company. As Torreyana insures or reinsures Vertex's global liability and property exposures, it plays a strategic and critical role in Vertex's overall ERM in protecting the enterprise's assets.
The very strong balance sheet strength assessment of TIC is supported by the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), as well as a conservative investment portfolio and adequate reserves. Its recent growth in surplus is supported largely with capital contribution from its parent, Vertex. Additionally, TIC has a highly rated diverse and reinsurance panel that is well-equipped to protect the company's balance sheet.
TIC's strong operating performance reflects its consistently favorable combined ratios, supported by very low loss ratios based on Vertex's historical legacy loss experience placed into Torreyana upon establishment. Combined ratios are significantly lower than those of peers. Additionally, TIC maintains minimal expense ratios as a single-parent captive, and it continues to review expansion into additional coverages for the parent.
Torreyana is a wholly owned captive insurance subsidiary of Vertex, created to insure or reinsure specific risks of its parent organization. AM Best assesses the business profile as neutral as TIC is diverse geographically and by product, as it offers several coverages for its global parent. ERM is appropriate for the company as its practices have emanated from its parent, Vertex, leading to its establishment. Vertex is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company has approved medicines that treat the underlying causes of multiple chronic, life-shortening genetic diseases - cystic fibrosis, sickle cell disease and transfusion-dependent beta thalassemia - and continues to advance clinical and research programs in these diseases.
AM 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.
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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Kourtnie Beckwith
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