The financial rating agency, A M Best, has maintained its highly positive ratings for the Trinidadian insurance firm, TATIL, saying that its decision was based on a blend of the company's historically strong financial performance and the cushion it has from a strong parent, the Port of Spain-based conglomerate, ANSA McAL.

In an announcement on Tuesday, Best held that TATIL'S (Trinidad and Tobago Insurance Ltd) financial strength rating at 'A-', which placed it in the bracket of 'excellent.'

Best assigned the company an issuer credit rating of 'A-'.

The outlook for TATIL, on both measures, was stable, Best said.

"The rating reflects TATIL's historically profitable operating performance, adequate capitalisation and the implicit support and commitment of its ultimate parent, ANSA McAL," it said.

According to Best, TATIL had historically maintained a "prudent underwriting philosophy and conservative risk management strategy" that had allowed the firm to return stable and consistent profit.

Enhancing capitalisation

"This has allowed TATIL to continue to enhance its risk-adjusted capitalisation, which remains adequate for its current ratings," Best said.

However, the rating agency said that TATIL's strengths were partially offset by the geographic concentration of operations - primarily Trinidad and Tobago and Barbados - that exposes the company to weather-related events and makes it "vulnerable to regulatory, economic and political risks and market volatility."

Taken from the Financial Gleaner, Friday May 16, 2008.