AM Best Affirms Credit Ratings of International Traders Insurance Co., Ltd.
01 Agosto 2024 - 2:31PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of International Traders Insurance Co., Ltd. (ITICO)
(Turks and Caicos Islands, British West Indies). The outlook of
these Credit Ratings (ratings) is stable.
The ratings reflect ITICO’s balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, neutral business profile and appropriate enterprise
risk management.
The ratings also reflect the company’s strongest level of
risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), supported by its consistent historical
profitability. Partially offsetting these positive rating factors
is the inherent execution risk of ITICO’s expansion and
diversification initiatives.
ITICO is a reinsurance company with 40 years of experience in
the sector. The company is domiciled in the Turks and Caicos
Islands, and has representative offices in Panama and Colombia,
through which it provides clients access to the Latin America and
Caribbean markets. ITICO is owned by a pure holding company that is
domiciled in the Cayman Islands.
Within the reinsurance market, ITICO stands out for its
commercial relationships with the ceding companies and the
structuring of reinsurance programs based on clients’ needs.
As of December 2023, ITICO’s business portfolio was mainly
composed of fire (51%), with 16% from group life, and the rest in
other business lines. In addition to Panama, the company is
diversified geographically in 37 other countries, mainly across
Latin America and the Caribbean.
ITICO’s risk-adjusted capitalization stands at the strongest
level for historical and projected years, as measured by BCAR, due
to its conservative investment base, low retention profile and a
good quality of capital. Conversely, management is prone to use its
capital efficiently, which might lead to dividends going
forward.
The company’s overall results are characterized by sustained
profitability, despite fluctuations in its volume of gross written
premium. ITICO’s loss ratio has remained contained due to its
prudent underwriting practices. The company’s investment income has
showed a stable trend, moderately supporting ITICO’s income
generation.
Factors that could lead to positive rating actions include the
continued growth of the company’s capital base in the medium term,
supportive of the strongest level of risk-adjusted capitalization,
as measured by BCAR, and successful consolidation of company’s
business strategy in targeted locations, while maintaining strong
operating performance. Negative rating actions could occur if
premium growth or changes in the investment or its underwriting
risk profile reduce risk-adjusted capitalization to a level that no
longer supports the ratings. Negative rating actions may also occur
if ITICO’s business strategy has an unfavorable development and
increases concentration risk, or if there is a shift in the
company's operating performance metrics to levels no longer
consistent with the strong assessment level.
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
Performance Assessments, Best’s Preliminary Credit Assessments and
AM Best press releases, please view Guide to Proper Use of
Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Olga Rubo, FRM Senior Financial Analyst +52 55
1102 2720, ext. 134 olga.rubo@ambest.com
Alfonso Novelo Senior Director, Analytics +52
55 1102 2720, ext. 107 alfonso.novelo@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com