MS Transverse’s FSR upgraded to A-plus by AM Best

By Chris Munro

June 20 - (The Insurer) - MS Transverse Insurance Group’s financial strength rating (FSR) has been upgraded to A-plus from A by AM Best in a move that reflects its parent Mitsui Sumitomo Insurance Company (MSI)’s support and its strong operating performance.

AM Best said the upgrade, which applies to MS Transverse Specialty Insurance Company, MS Transverse Insurance Company and TRM Specialty Insurance Company, also reflects the hybrid fronting carrier’s “favorable business profile and appropriate enterprise risk management."

Alongside the FSR upgrade, AM Best has raised MS Transverse’s long-term issuer credit ratings (ICRs) to aa from a-plus.

The outlooks on both the FSR and long-term ICRs is stable.

As AM Best explained, the upgrade reflects the assignment of full rating enhancement to MS Transverse owing to the greater support by MS&AD Insurance Group Holdings (MS&AD), its ultimate parent, and also that operation’s lead insurance focused entity MSI.

“The ratings of MSI are being extended to MS Transverse given the implicit and explicit support provided by MSI,” said AM Best.

“MS Transverse is regarded as strategically important to the group’s strategy and is viewed as one of its main sources of growth in the U.S. market,” the ratings agency added.

Also supporting the upgrade is MS Transverse’s position in the U.S. MGA market, with the company having expanded and now among the top five fronting carriers based on direct premiums written.

Since MSI acquired MS Transverse in early 2023 to expand its U.S. operations, the fronting carrier has benefited from a full unconditional guarantee from the parent, participation in its reinsurance panel and a willingness to provide additional capital support if required.

“MS Transverse’s management team has a direct reporting line into MSI and shares services with other U.S. affiliates of MSI,” explained AM Best.

“MS Transverse’s profitability grew materially in 2024 and through the first quarter of 2025, making it a significant earnings contributor to the parent. MSI remains committed to supporting MS Transverse’s growth,” the agency added.

As previously reported by this publication, MS Transverse grew significantly in 2024 to $2.14 billion of gross premium written. It ceded $2 billion of premium to reinsurers, with its net premium written totalling $114 million.

According to statutory data, MS Transverse jumped from $829 million of direct premium written in 2023 to $2.01 billion last year.

The company generated a 43.2% gross loss ratio in 2024, with a 41.5% ceded loss ratio.

MS Transverse’s FSR and long-term ICR upgrades come at a time of change among its senior ranks.

This publication reported in late April that ex-BMS Re CEO and Guy Carpenter executive Pete Chandler joined MS Transverse as chief revenue officer, while it also promoted Ethan Allen to the newly created role of chief program officer.

Current executive vice president of reinsurance Paul Goodwin will retire from his role at the end of 2025 after a period of active transition to Chandler, the company explained at the time.

Dennis Sparks retired as MS Transverse’s CUO in May, and now serves the company as a senior advisor.