A.M. Best will leave Travelers’ ratings alone

Modest leverage, strong financial position reassure ratings company

Insurance ratings company A.M. Best has announced that its ratings for The Travelers Companies, Inc. will remain unchanged in the wake of the announcement of Travelers’ purchase of The Dominion for $1.1 billion.

“Given Travelers’ strong consolidated risk-adjusted capitalization, historically favorable operating results, comprehensive risk management, modest financial leverage and relatively strong interest coverage, the proposed acquisition is not expected to adversely impact the financial position of Travelers or its subsidiaries,” said A.M. Best in a statement.

Read: Details of the Travelers/Dominion deal

A.M. Best had only recently upgraded the outlook for Travelers from “stable” to “positive” and affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa” of all its property/casualty subsidiaries.

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