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OLDWICK, N.J., January 10, 2024–(BUSINESS WIRE) — AM Best, a globally recognized credit rating agency, has recently affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for TDC Insurance Company Limited (TDCIC) in St. Kitts and Nevis. The outlook for these Credit Ratings remains stable.

The ratings are a testament to TDCIC’s robust financial position, characterized by a very strong balance sheet, commendable operating performance, a limited yet carefully managed business profile, and effective enterprise risk management (ERM) practices.

TDCIC’s balance sheet strength is a cornerstone of its A- rating, marked by very strong risk-adjusted capitalization as gauged by Best’s Capital Adequacy Ratio (BCAR). Despite having a relatively modest total capital and surplus, TDCIC has demonstrated consistent growth over the last five years, propelled by favorable net earnings. The organization’s commitment to managing catastrophe risk, inherent in its role as a Caribbean property and casualty insurer, is evident in its strategic reinsurance dependence. This approach, coupled with a conservative reinsurance structure and affiliation with East Caribbean Reinsurance Company Limited (ECRC), contributes to mitigating volatility and maintaining surplus protection.

TDCIC’s operating performance is highlighted as strong, a result of prudent risk management and strict underwriting practices. The company’s history of favorable loss experience, combined with steady investment income, has contributed to its consistent operating gains.

While the business profile is assessed as limited due to concentration risk, with operations exclusively in St. Kitts and Nevis, TDCIC addresses this challenge through an effective ERM program. This program allows the organization to monitor and manage risks, particularly concentration risk, ensuring a well-rounded risk management strategy.

Timothy Willey, Financial Analyst at AM Best, emphasized the significance of TDCIC’s conservative investment portfolio, which mainly comprises cash and short-term investments, reinforcing ongoing liquidity.

This affirmation of TDCIC’s ratings underscores the company’s commitment to maintaining financial stability and effective risk management in the dynamic insurance landscape.

For more detailed information on the ratings and related disclosures, interested parties can visit AM Best’s Recent Rating Activity web page. Further insights into the use and limitations of Credit Rating opinions can be found in the Guide to Best’s Credit Ratings.

AM Best, a global credit rating agency and data analytics provider, operates in over 100 countries with regional offices worldwide, including London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City.

For media inquiries, please contact:

• Timothy Willey, Financial Analyst, +1 908 882 2433, timothy.willey@ambest.com
• Doniella Pliss, Director, +1 908 882 2245, doniella.pliss@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