The agency said that in its view the outlook for TT Club over the next year is 'stable'.

A.M.Best expected TT Club to maintain a strong capital position in 2009, despite an anticipated reduction in retained earnings. "Capitalisation is supported by a USD 30 million subordinated loan (issued in October 2006), and the Club benefits from a comprehensive catastrophe reinsurance programme with extensive vertical and horizontal protection" said a statement by A.M.Best.

Charles Fenton, CEO of TT Club, expressed satisfaction with the confirmation of an A- rating. "This comes against a background of a difficult year for the insurance industry, when natural disasters such as the flooding in Myanmar, the major earthquake in Sichuan, China and the hurricanes in the US Gulf made 2008 the second costliest year in insurance history, after 2005."

"Ninety per cent of the Club's assets have been invested in highly rated government bonds and cash deposits, and as a result the Club was not exposed to the effects of the severe downturn in the equity markets in the second half of the year and achieved an underlying investment return of 3.5%. No doubt this sensible investment policy has been instrumental in having our credit rating reaffirmed," he said.

In addition to a re-alignment of the risk profile and new product development, the strategy, already implemented to a significant degree by TT includes; improvement in the high service standards offered to the Club's traditional core market sectors, particularly port and terminal operators; maintenance of a high solvency level; reduced dependence on reinsurance, via higher risk retention and an increased sales focus on the transport and logistics sector.

In the agency's opinion, TT Club has a good specialist business profile in the international freight transport and cargo handling insurance market, underpinned by a superior service provision. This is likely to support high policyholder retention in 2009. In 2008 the Club achieved a retention rate on renewal of over 90%.

Fenton concluded, "I am confident that the Club is now well-placed to take full commercial advantage of improving economic conditions through 2010."