OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Trinidad & Tobago Insurance Limited (TATIL) (Trinidad). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect TATIL’s solid risk-adjusted capitalization, history of profitable overall operating performance and strong reinsurance support.
TATIL has consistently produced favorable underwriting results, which have been complemented by a stable level of investment income. A profitable overall earnings trend and relatively modest dividend requirements have contributed to surplus growth and a sustained strong level of risk-adjusted capitalization.
Partially offsetting these positive rating factors are the geographic concentration of TATIL’s operations, its continuing challenge to maintain overall earnings and market share in extremely competitive markets and the inherent exposure to potential impact from exposure to catastrophe events. TATIL operates primarily in Trinidad & Tobago, as well as Barbados, which have moderate yet increasing levels of economic, political and financial system risk. Somewhat mitigating the catastrophe exposure is prudent catastrophe risk management, which limits exposure to natural catastrophe events. Furthermore, the company operates in a region that has historically been less prone to hurricane activity.
While the outlook for each of TATIL’s ratings is stable, positive rating factors include continuing to outperform its Caribbean peers while maintaining strong risk-adjusted capitalization. In addition, favorable rating consideration could be given if there is improvement in the Trinidad & Tobago country risk tier. Negative rating actions could occur if there is a material weakening of the balance sheet, an unfavorable operating performance trend or a downgrade of the Trinidad & Tobago country risk tier.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.