TMCnet News
AM Best Affirms Credit Ratings of TDC Insurance Company LimitedAM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" of TDC Insurance Company Limited (TDCIC) (St. Kitts and Nevis). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect TDCIC's balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. TDCIC's balance sheet strength is supported by risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). However, the company is relatively small with less than USD 20 million in equity, and relies heavily on the strength of its reinsurers to manage its catastrophe exposure, minimize earnings volatility and protect surplus. Operating performance has generally been favorable as a result of prudent underwriting and conservative risk management strategies. Results have also been enhanced in recent years by the absence of losses from catastrophe events. Although TDCIC is a leading automobile and property writer in the Federation of St. Kitts and Nevis, its business profile is considered limited because its operations are confined to its domestic market. St. Kitts and Nevis is highly dependent upon tourism and vulnerable to price changes in key commodities. Other considerations include a difficult local macroeconomic environment and highly competitive market conditions. In addition, losses from catastrophic weather events remain a significant threat to TDCC. However, this potential exposure is reduced to a manageable level by a conservative reinsurance program placed with a high quality panel of reinsurers. 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 media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com. Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201119006086/en/ |
