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AM Best has a financial strength rating of A+ (excellent) and a long-term issuer credit rating of ‘aa-‘ (excellent).
The ratings reflect the strength of TMPI’s balance sheet, which AM Best assesses as very strong, adequate operating performance, a neutral business profile and adequate corporate risk management. The rating also acknowledges the broad implicit and explicit support TMPI receives.
AM Best rates TMPI’s risk-adjusted capital at the highest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Although capital growth has slowed due to higher dividend payments in recent years, AM Best expects the company’s risk-adjusted capital to remain at its strongest level over the medium term. Our assessment of balance sheet strength also takes into account a highly conservative investment strategy and a low reliance on reinsurance.
TMPI’s focus on the accident and health (A&H) segment and market competition has led to a track record of good and consistent performance overall, although underwriting margins remain thin. The company reported strong earnings in 2020 and 2021. This is due to a decline in medical and auto claims amid the COVID-19 pandemic and various underwriting initiatives. However, the first half of 2022 showed underwriting margins deteriorating due to a post-pandemic recovery in medical claims combined with the re-entry into the US.
TMPI is a wholly owned subsidiary.
The company receives extensive implicit and explicit support from the Group with respect to brand recognition, management expertise, operations, capital and reinsurance.
A sustained and significant deterioration in TMPI’s performance could lead to a downgrade of the rating. If risk-adjusted capital declines significantly, for example if capital requirements increase significantly while earnings retention remains low, or to the extent that support from the TMNF no longer supports the current level of enhancement. A decrease may also result in negative rating action.

AM Best continues to be the leading rating agency for alternative risk transfer entities, with over 200 such vehicles rated worldwide. For current Best credit ratings and independent data on the captive and alternative risk transfer insurance market, please visit: www.ambest.com/captive.
Ratings are communicated to the rated entity prior to issuance.Unless otherwise noted, the evaluation is After that communication it was not fixed.
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Source: AM Best
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