AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Torreyana Insurance Company, Inc. (TIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The very strong balance sheet strength assessment of TIC is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). TIC has a highly liquid investment portfolio that consists predominantly of cash and cash equivalents. In 2025, the company added a loan back to its parent, Vertex Pharmaceuticals Incorporated (Vertex). The growth in TIC’s surplus is funded largely with internally generated capital from profitable underwriting and overall operations while capital contribution from its parent also has supported surplus growth. The captive is reliant on reinsurance to protect surplus from losses due to catastrophe events; however, it buys adequate protection for these purposes with a high-quality and diversified panel of reinsurers.

TIC’s strong operating performance is evidenced by its pre-tax and total returns on revenue and equity that readily outperform industry averages. In addition, the five-year average combined ratio compares favorably with the industry average due to the captive’s prudent risk management and low underwriting expense structure that produces significant net underwriting income annually. TIC is a wholly owned captive insurance subsidiary of Vertex, created to insure or reinsure specific risks of its parent organization. AM Best assesses the business profile as neutral as TIC is diverse geographically and by product, as it offers numerous coverages for its global parent.

ERM is appropriate for the captive as its practices have emanated from its parent, Vertex, leading to its establishment. Vertex is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company now has seven approved medicines: five that treat cystic fibrosis (“CF”), one that treats severe sickle cell disease (“SCD”) and transfusion-dependent beta thalassemia (“TDT”), and one that treats moderate-to-severe acute pain - and continues to advance clinical and research programs in these diseases.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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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