CORRECTING and REPLACING AM Best Affirms Credit Ratings of TDC Insurance Company Limited

OLDWICK, N.J.–(BUSINESS WIRE)–Fourth paragraph of the release dated October 2, 2019, should read: “…in the very strong category…” (instead of “… in the strongest category…”).

The corrected release reads:


AM 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) (St. Kitts and Nevis). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect TDCIC’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

TDCIC’s balance sheet strength is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). However, the company is relatively small with less than USD 20 million in equity, and it relies heavily on the strength of its reinsurers to manage its catastrophe exposure, minimize earnings volatility and protect surplus. The ratings benefit from the company’s operating performance, which on average has been strong over the prior five-year period. Operating performance has historically been profitable due to the company’s prudent underwriting and conservative risk management strategies, as well as low frequency of hurricanes affecting its operating territories in recent years. TDCIC is a leading motor and property writer in the St. Kitts and Nevis markets. Although the company has a solid regional business presence, its business profile is limited as it operates primarily in St. Kitts and Nevis, which are vulnerable to price changes in key commodities and highly dependent upon tourism. Additional rating considerations include difficult local macroeconomic conditions and highly competitive market conditions. TDCIC has significant loss exposure in the region to catastrophic weather events; however, based on management’s view of this exposure, the risk is reduced materially by a reinsurance program backed by quality reinsurers. Prospectively, earnings remain subject to a mature, highly competitive regional market and catastrophe losses, given its exposure.

The stable rating outlooks reflect AM Best’s expectation that the company’s rating fundamentals will remain unchanged in the intermediate term, including balance sheet strength remaining in the very strong category and overall operating performance commensurate with similarly rated peers.

Negative rating action could occur should operating performance deteriorate over time due to a decline in underwriting standards, inadequate pricing, an upward trend in claims frequency or severity, changes in the regulatory, legislative or economic conditions in St. Kitts and Nevis or if risk-adjusted capitalization were to significantly weaken. This may occur from a material loss of surplus should catastrophic events exceed the limits of the company’s reinsurance protection.

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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Alexander Sarfo
Senior Financial Analyst
+1 908 439 2200, ext. 5779
[email protected]

Sharon Marks
Associate Director
+1 908 439 2200, ext. 5477
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]


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