Feb 2015 Financial News

Ratings agency affirms Tatil’s financial strength

Feb 20, 2015

Global credit rating agency AM Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of T&T Insurance Limited (Tatil) (Trinidad). The outlook for both ratings is stable.

Commenting on the ratings yesterday, the insurance giant said in a media release that it reflects Tatil’s “history of profitable overall operating performance, solid capitalisation and the support it receives from its ultimate parent, Ansa McAL Limited (AMCL).” AMCL is one of the largest diversified companies in the Caribbean and is publicly traded on the Trinidad & Tobago Stock Exchange.

“Tatil has has consistently produced favourable overall earnings, driven by strong underwriting and stable investment income. Tatil’s surplus has steadily appreciated and it maintains a strong level of risk-adjusted capitalisation as measured by Best’s Capital Adequacy Ratio. Tatil benefits from support provided by AMCL in functional areas such as information technology and investment services,” the company said.

However, partially offsetting these positive rating factors is the geographic concentration of the company’s operations, its continuing challenge to maintain market share in extremely competitive markets and the potential impact from exposure to catastrophic events.

While the outlook for Tatil’s ratings is stable, positive rating actions could occur if the company outperforms its Caribbean peers, maintains strong capitalization and there is an improvement in the T&T country risk tier. Negative rating actions could occur if there is a material decline in the company’s risk-adjusted capitalisation or operating performance, outsized catastrophic losses when compared to peers or a downgrade of the T&T country risk tier.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of the agency’s rating process and contains the different rating criteria employed. Insurance professionals, brokers, regulators and consumers refer to Best’s Credit Ratings as an opinion of the financial strength and creditworthiness of risk-bearing entities and investment vehicles.

Source:
Trinidad Guardian
Friday February 20, 2015

http://www.guardian.co.tt/business/2015-02-20/ratings-agency-affirms-tatil%E2%80%99s-financial-strength