OLDWICK, N.J.--(BUSINESS WIRE)--Dec 15, 2022--

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of TDC Insurance Company Limited (TDCIC) (St. Kitts and Nevis). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect TDCIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

TDCIC’s balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Surplus has strengthened over the past three years aided by growing earnings. Surplus growth, partially offset by the recent shareholder dividend, has outpaced the growth of net premium over the past several years. The company maintains a conservative investment portfolio, which enhances liquidity. However, the company has high reliance on reinsurance, which helps in managing its catastrophe exposure, minimizing earnings volatility and protecting surplus. Reinsurance risk is further mitigated by its affiliate, East Caribbean Reinsurance Company Limited, which reduces the cost of access to reinsurance markets for TDCIC. TDCIC’s operating performance is strong, reflecting consistent favorable results over the past five years that benefited from the absence of catastrophic events. Conservative underwriting and reinsurance have been consistent with risk management objectives and strategy. However, geographic concentration exposes the company to highly competitive market conditions and a difficult local economic environment, as well as the inherent exposure to the potential impact from catastrophe events.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’sRecent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please viewGuide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please viewGuide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visitwww.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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CONTACT: Antonietta Iachetta

Senior Financial Analyst

+1 908 439 2200, ext. 5792

antonietta.iachetta@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comDoniella Pliss

Director

+1 908 439 2200, ext. 5104

doniella.pliss@ambest.comAl Slavin

Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2022.

PUB: 12/15/2022 10:21 AM/DISC: 12/15/2022 10:21 AM

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