AM Best Assigns Credit Ratings to MTM Assurance Ltd.
The ratings reflect MTM's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
MTM is a niche insurer operating out of Barbados where it provides revenue loss reinsurance for a limited number of financial services industry partners, which are primarily located in the Canadian market. AM Best's balance sheet strength assessment of very strong is supported by the company's risk-adjusted capitalization being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). MTM's capital is accreted through its retained earnings with an offset to its projected growth of modest dividends paid up to its shareholders.
The company has good liquidity with approximately one fifth of its invested assets held in cash and short-term fixed investments. However, about two thirds of investments are private loans, which elevates balance sheet asset risk. With its limited claims experience, MTM's operating results have been robust for fiscal-year 2024 and near-term results indicate a continuation of this trend. Management maintains strong oversight of operations and has extensive knowledge of its business segment, which contributes to the company's operating stability. In coordination with a third party, the company has developed a process for risk identification, documentation and reporting, as well as for modeling and pricing risk management.
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.
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