RATING ACTION:
On June 15, 2023, CariCRIS reaffirmed the assigned ratings of CariA- (Foreign and Local Currency Ratings) on the regional rating scale, and ttA- on the Trinidad and Tobago (T&T) national scale for The Beacon Insurance Company Limited. 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 its largest market, T&T to 10% or more.
- Enhancement of Beacon’s risk management through the complete rollout of an enterprise risk management system.
- 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 S&P rating scale.
- Increased profitability leading to an improvement in ROA and 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/or outlook include:
- A 2-notch deterioration of the credit rating of Beacon’s top reinsurer.
- A deterioration of the company’s capital adequacy ratio to 150% or lower on a sustained basis for at least 6 months.
- Loss of relationship with any of the Company’s major reinsurers and failure to provide viable replacements.
- A second consecutive year of the Company reported a loss after tax.
Analysts’ Contact Info:
Keith Hamlet
Mobile : 1-868-487-4356
Sultan Mohammed
Mobile : 1-1868-362-7304
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