Rating Upgrades for TRINRE Insurance Company | Local company
The Caribbean Credit Reporting and Reporting Services (CariCRIS) upgraded companies’ credit ratings to CariA (currency and local currency ratings) on the company’s regional rating scale. TRINRE insurance.
He also switched to ttA nationwide Trinidad and Tobago (T&T) for TRINRE.
“These ratings indicate that the level of creditworthiness of this debtor, judged against other debtors in the Caribbean, is good,” CariCRIS said in a statement.
CariCRIS also improved CariA’s financial strength rating by a notch, indicating that the company’s ability to meet its outstanding insurance obligations is good.
He said TRINRE’s rating increase one notch was based on:
(i) A considerably improved capitalization over the past year with an average growth rate of 16.4% over the past three years.
(ii) Annual increase in earnings over the past two years exceeding the 15% specified as Rating Sensitivity Factor (RSF) in our 2018 report when ratings were first assigned.
(iii) Significant reduction in the risk profile of its investment portfolio over the past three years.
(iv) Significant improvements to its business information systems leading to greater synergies and business management capabilities, particularly over the past three years.
(v) Diversification of sources of income over the past year through the successful establishment of operations in Guyana.
“TRINRE’s ratings are supported by sound capitalization, good liquidity and low risk retention. The company was able to continue to operate profitably, with increases in profit margins recorded for its fiscal year ended March 2021, ”noted CariCRIS.
TRINRE also maintained a moderately diversified investment portfolio with good asset quality.
“In addition, the company continues to upgrade its information system as a proactive measure to improve operational efficiency and overall service,” he said.
These rating strengths are tempered by the company’s heavy reliance on the performance of Trinidad and Tobago’s economy, which may impact its profitability, CariCRIS noted.
CariCRIS also assigned a stable outlook to ratings.
“The stable outlook is based on our expectation that over the next 12 to 15 months, TRINRE will continue to maintain profitable operations, with the expectation that the company’s capitalization and liquidity ratios will remain strong,” added the rating agency.