RATING ACTION:
On September 20, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit Ratings assigned to The Beacon Insurance Company Limited (Beacon or the Company) at CariA- (Foreign and Local Currency Ratings) on the regional scale, and ttA- (Local Currency Rating) on the Trinidad and Tobago national scale. A stable outlook was maintained.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the ratings and /or outlook include:
- An improvement in the market share of general insurance products in Beacon’s largest market to 10% or more
- Enhancement of Beacon’s systems and procedures through improved risk management practices via full Enterprise Risk Management (ERM) framework implementation
- An improvement in the overall credit profile for Beacon’s fixed income portfolio where more than 60% of the portfolio is rated investment grade on the Standard and Poor’s (S&P) rating scale
- Increased profitability leading to an improvement in Return on Assets (ROA) and Return on Equity (ROE) to above 2.5% and 10% respectively for the next financial year
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
- A 2-notch deterioration of the credit rating of Beacon’s top reinsurer
- A fall in insurance revenue by over 15% sustained for 2 years leading to a reduction in Profit After Tax (PAT)
- A fall in PAT by 20% or more for 2 consecutive years
- Loss of relationship with any of the Company’s major reinsurers and failure to provide viable replacements
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
[email protected]
Zwade Thompson
[email protected]
www.caricris.com
[email protected]
Disclaimer: CariCRIS has taken due care and caution in the compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable. However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report may be published /reproduced in any form without CariCRIS’ prior written approval. CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.