A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and the issuer credit rating of “a-“ of Trust International Insurance and Reinsurance Company.
The ratings reflect Trust Re’s strong risk-adjusted capitalisation, track record of solid operating performance and developing business profile.
Trust Re actively manages its risks to ensure its capital position remains at a strong level.
During 2014, its risk-adjusted capitalisation strengthened, following a capital injection of $30 million and full earnings retention, increasing shareholders’ equity to $385.2 million at the end of 2014.
In addition, capital requirements have reduced with the company disposing of further real estate investments.
Trust Re’s risk-adjusted capitalisation is expected to remain supportive of the current rating level, following a further $30 million capital injection in April 2015, whilst high earnings retention should continue to support underwriting growth.
Trust Re has a track record of consistent profitability, with a five-year weighted average return on equity of 6.2 percent.
In 2014, profits reduced marginally to $15.4 million from $18.0 million driven by a higher frequency of large losses emanating from Trust Re’s Asian treaty business. These were partly offset by improved investment income and realised gains on the sale of equities and a real-estate subsidiary.
Disciplined risk selection and a prudent reserving policy have enabled the company to maintain robust technical results, evidenced by a five-year average combined ratio below 95 percent.
Although investment returns remain relatively low, they continue to account for a significant proportion of overall earnings.
