A.M Best has made enhancements to the MS Transverse rating.
In a remarkable turn of events, MS Transverse, a leading hybrid fronting insurer, has experienced significant growth and positive transformation since its acquisition by Mitsui Sumitomo Insurance Co. in January 2023.
The Financial Strength Rating of MS Transverse has been upgraded from A (Excellent) to A+ (Superior) by A.M. Best, aligning it with the rating of its parent company, Mitsui Sumitomo Insurance Co. This upgrade also included enhanced Long-Term Issuer Credit Ratings to "aa" (Superior) from "a+" (Excellent), with a stable outlook.
The upgrade is a significant milestone for MS Transverse, according to CEO Dave Paulsson, who views it as a testament to the company's strong business model, partnerships, and risk management discipline. Senior executives at Mitsui Sumitomo have also highlighted MS Transverse as a key part of their global strategy and a dynamic platform for growth in the MGA and fronting insurance market.
MS Transverse ended 2024 as the largest hybrid fronting insurer in the U.S. by gross written premiums, indicating strong market leadership and expansion since the acquisition. The company operates as a hybrid fronting carrier, offering fronting services and underwriting capabilities in partnership with managing general agents (MGAs) and reinsurers.
The strategic partnership between MS Transverse and Mitsui Sumitomo has also been recognised in the industry. MS Transverse was awarded the “Fronting Carrier of the Year” title for the third time in four years at the 2025 Program Manager Awards, underscoring its strong reputation and service quality in the insurance market.
Meanwhile, MS&AD Insurance Group Holdings, Inc., a global insurance and financial services group, provides strategic backing and oversight to MS Transverse. This strategic partnership has enabled MS Transverse to leverage deep underwriting expertise to support a growing portfolio of program business across a broad range of property and casualty lines.
Elsewhere, Greater Than, an Insurtech provider that uses AI to predict and price motor risk, has decided to establish a wholly-owned subsidiary in Japan to develop and capitalise on business opportunities in the region.
In other related news, Argyle Insurance has entered into a multi-year capacity agreement with Mitsui Sumitomo Insurance Co., Ltd. The agreement marks the beginning of a strategic partnership between Argyle and Mitsui Sumitomo to elevate business insurance solutions for Australian SMEs.
Hiro Morimoto, Director Senior Executive Officer of Mitsui Sumitomo Insurance Co., expressed enthusiasm about MS Transverse’s role within Mitsui Sumitomo, reflecting A.M. Best’s recognition of MS Transverse’s strategic importance to and alignment with Mitsui Sumitomo.
InsurTech NY is conducting a benchmark study on Corporate Venture Capital, further highlighting the growing interest in the insurance technology sector.
Overall, MS Transverse has not only grown to become the largest hybrid fronting insurer by premium volume in the U.S. but also benefited from enhanced financial strength and strategic integration, positioning it for continued expansion and long-term value creation under Mitsui Sumitomo’s ownership.
The strategic integration of MS Transverse with Mitsui Sumitomo Insurance Co. has positioned it for continued expansion, offering opportunities in both the MGA and fronting insurance market. Meanwhile, Greater Than, an Insurtech provider, is capitalizing on business opportunities in Japan by establishing a wholly-owned subsidiary, further highlighting the growth and interest in the insurtech sector.
