AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Trinidad & Tobago Insurance Limited

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Trinidad & Tobago Insurance Limited (TATIL) (Trinidad and Tobago). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect TATIL’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

TATIL’s balance sheet strength is supported by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). TATIL’s surplus growth and level of risk-adjusted capitalization continues to be supported by profitable overall earnings, favorable liquidity measures, steady operating cash flows, as well as an effective reinsurance program that mitigates catastrophic loss.

TATIL has generally produced favorable underwriting results, and absent the recent market turmoil, this has been augmented by stable levels of investment and rental income, resulting in historically profitable overall operating performance. These factors are somewhat offset by the geographic concentration of TATIL’s operations, its continuing challenge to maintain earnings and market share in extremely competitive markets and its inherent exposure to catastrophe events.

The company recently completed the acquisition of Colonial Fire and General Insurance Company Limited (Colfire), consolidating its position as one of the top two dominant property/casualty insurers in the Trinidad and Tobago market. TATIL and Colfire will operate as separate entities in the short to medium term; however, integration efforts will concentrate on extracting business synergies and achieving economies of scale where possible.

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.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Ricardo Longchallon
Senior Financial Analyst

+1 908 882 2019

ricardo.longchallon@ambest.com

Sharon Marks
Director

+1 908 882 2092

sharon.marks@ambest.com

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best