Market Overview

A.M. Best Affirms Credit Ratings of Trinidad & Tobago Insurance Limited


A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of "a-" of Trinidad
& Tobago Insurance Limited
(TATIL) (Trinidad and Tobago). The
outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect TATIL's balance sheet strength, which A.M. Best
categorizes as strongest, as well as its strong operating performance,
limited business profile and appropriate enterprise risk management

TATIL's balance sheet strength assessment reflects the company's
strongest risk-adjusted capitalization, as measured by Best's Capital
Adequacy Ratio (BCAR), history of profitable overall operating
performance that has grown shareholders' equity and an effective
reinsurance program that mitigates exposure to catastrophic loss events.

TATIL has consistently produced favorable underwriting results, which
have been complemented by a stable level of investment income. A
profitable overall earnings trend and relatively modest dividend
requirements have contributed to surplus growth and a sustained solid
level of risk-adjusted capitalization.

Partially offsetting these positive rating factors are the geographic
concentration of TATIL's operations, its continuing challenge to
maintain overall earnings, and market share in extremely competitive
markets and the inherent exposure to potential impact from exposure to
catastrophe events.

TATIL's strong operating performance is the result of consistent
profitable earnings underpinned by favorable underwriting performance
and investment income. Years of benign catastrophe loss experience have
allowed TATIL to maintain a track record of favorable operating
performance. Although TATIL has a solid regional business presence, its
business profile is limited as it operates primarily in Trinidad and
Tobago, as well as Barbados, which have moderate yet increasing levels
of economic, political and financial system risk. Somewhat mitigating
the catastrophe exposure is prudent catastrophe risk management, which
limits exposure to natural catastrophe events, hence the appropriate ERM
program. The catastrophe reinsurance program is backed by high quality
reinsurers. Furthermore, the company operates in a region that has
historically been less prone to hurricane activity. Notwithstanding,
given the exposure of the company to catastrophe losses, prospective
results are likely to remain subject to volatility.

While the rating outlooks are stable, positive rating factors include
improvement in the Trinidad and Tobago country risk tier. Negative
rating actions could occur if there is material weakening of the balance
sheet strength, an unfavorable trend in operating performance or a
downgrade of the Trinidad and Tobago country risk tier.

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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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