Ratings Recap: Arab Orient, Egypt Re, Trinidad and Tobago Insurance

May 15, 2008

A.M. Best Co. has affirmed the financial strength rating of ‘B+’ (Good) and issuer credit rating of “bbb-” of Jordan’s Arab Orient Insurance Company with a stable outlook. “The ratings reflect Arab Orient’s strong risk-adjusted capitalization, leading business position in its domestic market and good operating performance,” said Best. The rating agency also indicated that it expects prospective risk-adjusted capitalization “to remain strong over the next two years, with significant retained earnings to support its strategic business plan, with projected growth of up to 15 percent per annum.” In addition the Company “has a very good business position in Jordan, establishing itself as a market leader with an approximate 9 percent share of gross premiums written in 2007. The company’s portfolio reflects local market characteristics, with approximately 65 percent of gross written premiums dominated by medical healthcare and motor risks.”

A.M. Best Company has withdrawn the financial strength rating of ‘B++’ (Good) and the issuer credit rating of “bbb” of both The Egyptian Reinsurance Company (Egypt Re) and Al Chark Insurance Company following the merger of the state insurance companies. Consequently, Egypt Re and Al Chark have been assigned a category NR-5 (Not Formally Followed).

A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A-‘ (Excellent) and assigned an issuer credit rating (ICR) of “a-” to Trinidad and Tobago Insurance Limited (TATIL), and has assigned both ratings a stable outlook. “The ratings reflect TATIL’s historically profitable operating performance, adequate capitalization and the implicit support and commitment of its ultimate parent, ANSA McAL Limited (AMCL),” said Best. “AMCL is one of the leading regional business conglomerates and is publicly traded on the Trinidad and Tobago stock exchange.” In addition Best noted TATIL’s “prudent underwriting philosophy and conservative risk management strategy,” which “has historically enabled it to record stable and consistent earnings. This has allowed TATIL to continue to enhance its risk-adjusted capitalization, which remains adequate for its current ratings. As a strategic member within the group’s financial services operations, the company has the implicit support and commitment of AMCL and benefits from group synergies and access to AMCL’s considerable resources including information technology, financial and investment management.”

Was this article valuable?

Here are more articles you may enjoy.