Best’s News & Research Service - August 17, 2017 08:17 AM (EDT)
A.M. Best Affirms Credit Ratings of TDC Insurance Company Limited
- August 17, 2017 08:17 AM (EDT)
Oldwick //BestWire// - A.M. 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) (Basseterre, St. Kitts and Nevis). The outlook of these Credit Ratings (ratings) is stable.
The rating affirmations reflect TDCIC’s supportive balance sheet strength, historically favorable operating results and leading market presence in the Federation of St. Kitts and Nevis, partially offset by the company’s geographic and underwriting risk concentration in the Eastern Caribbean, and the challenges that weakened economic conditions have created for TDCIC’s overall operating performance and growth opportunities. Although St. Kitts and Nevis are vulnerable to price changes in key commodities and highly dependent upon tourism, economic conditions in these territories have shown modest improvement in recent years.
TDCIC is a leading motor and property writer in the St. Kitts and Nevis markets. The company enjoys excellent brand recognition throughout its regional operating territories. Operating performance has historically been profitable due to prudent underwriting, low frequency of hurricanes in recent years and adequate reinsurance protection backed by quality reinsurance partners. The company has historically posted underwriting profits, attributable to its prudent underwriting and conservative risk management strategies. Risk-adjusted capitalization also is sufficiently strong to support underwriting, investment and business risks, as well as strategic objectives.
TDCIC, formerly St. Kitts-Nevis Insurance Company, is an insurance operating company that is wholly owned by St. Kitts-Nevis-Anguilla Trading and Development Company Limited (TDC). TDC is a publicly traded company on the Eastern Caribbean Exchange, involved in general trading and services, finance and insurance, tourism, manufacturing, real estate development and other industries. The TDCIC name change was part of an effort to make the company easily identifiable with its parent, and enhance synergies arising from cross-selling opportunities and economies of scale among subsidiaries.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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