AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) 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 assesses 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 its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Leverage measures are modest, and the company maintains a strategically conservative and liquid investment portfolio. The company’s surplus growth and risk-adjusted capitalization continues to be enhanced by profitable overall earnings. 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.
TDCIC’s operating performance has generally been favorable as a result of prudent underwriting and conservative risk management strategies. Results also have been enhanced in recent years by the absence of losses from catastrophe events. These factors are offset somewhat by the geographic concentration of TDCIC’s operations, which exposes the company to highly competitive market conditions and a difficult local economic environment, as well as the inherent exposure to the potential impact from catastrophe events.
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 Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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