OLDWICK, N.J.–(BUSINESS WIRE)–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 (ERM).
TDCIC maintains the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), to support its balance sheet strength assessment. While total capital and surplus is relatively modest, the organization has generated capital and surplus growth annually over the last five years, driven by favorable net earnings. TDCIC’s capital and surplus growth has come despite occasional dividend payments to its parent entity, TDC Group Limited (TDC Group). Due to the company’s exposure to catastrophe risk as a Caribbean property and casualty insurer, TDCIC has elevated reinsurance dependence in order to manage the volatility of its earnings and protect its surplus. However, this dependence is partially mitigated by TDCIC s conservative reinsurance structure with high-quality reinsurance counterparties, no history of reinsurance disputes and its affiliation with East Caribbean Reinsurance Company Limited (ECRC), which helps to reduce the cost of access to its reinsurance markets. The organization also maintains a conservative investment portfolio, comprised primarily of cash and short-term investments, to maintain ongoing liquidity.
TDCIC’s operating performance is strong, reflecting its historically favorable loss experience brought on by strict underwriting and prudent risk management. The company has reported consistent operating gains, with investment income supplementing underwriting performance.
The organization’s business profile is assessed as limited. This is primarily due to elevated concentration risk, as its business is exclusively derived from St. Kitts and Nevis and predominantly comprised of property and motor premiums. TDCIC employs an ERM program to appropriately monitor and manage its organizational risks, such as concentration risk.
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Contacts
Timothy Willey
Financial Analyst
+1 908 882 2433
[email protected]
Doniella Pliss
Director
+1 908 882 2245
[email protected]
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]
