November 21st, 2019

TRINRE Insurance Company Limited Upgraded from Stable to Positive Outlook as CariCRIS reaffirms Cari-A Rating Brokers

Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the corporate credit ratings of CariA- (Foreign and Local Currency Ratings) on the regional rating scale, and ttA- on the Trinidad and Tobago (T&T) national scale to TRINRE Insurance Company Limited (TRINRE). These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean is good. CariCRIS has also reaffirmed the financial strength rating of CariA-, which indicates that the Company’s ability to meet its ongoing insurance obligations is good.
CariCRIS further assigns a positive outlook, an improvement from the prior stable outlook on the ratings. The positive outlook is based on our expectation that over the next 12 – 15 months, TRINRE will experience a boost in its earnings and profitability given ongoing initiatives to diversify earnings away from T&T into other regional territories. CariCRIS does not expect the execution of these initiatives to adversely impact TRINRE’s financial health indicators such as capital adequacy and asset quality in the medium term.
The ratings of TRINRE reflect the Company’s healthy capitalization and liquidity position which is supported by its low risk retention ratio. TRINRE’s liquidity position improved as at March 2019 compared to December 2017 which led to an improvement in the Company’s liquidity risk rating by two notches. Additionally, TRINRE continues to operate profitably and holds an adequately diverse investment portfolio with good asset quality. Furthermore, the Company maintains good operational efficiency and adequate risk management measures. The full implementation of the Company’s enterprise information system and improvements made to risk management has led to an improvement in CariCRIS’ risk rating for systems and procedures by one-notch.