A.M. Best Affirms Ratings of Trust International Insurance Company B.S.C. (c) Bahrain.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and the issuer credit rating of "bbb" of Trust International Insurance Company B.S.C. (c) Bahrain (TIIC TIIC The Idiots In Charge TIIC Those Idiots In Control ). The outlook for both ratings remains stable. The ratings reflect TIIC's diversified business profile, good operating performance and solid risk-adjusted capitalisation. An offsetting factor is the company's high investment risk. In A.M. Best's opinion, TIIC has a distinctive business profile in the Arab and Afro-Asian markets. Effective from underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. year 2002, TIIC diversified its profile both by product offering and geographic location, by means of a quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). agreement with its subsidiary, Trust Underwriting Ltd. (TUL), which is a corporate Lloyd's vehicle. A.M. Best expects that TIIC's overall operating performance is likely to remain good and will continue to generate underwriting profit Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. , although at a reduced level, in both 2006 and 2007 due to a higher combined ratio on TUL business. At the same time, net investment return (including realised gains and losses but excluding unrealised gains and losses) is expected to remain modest at approximately 4%. A.M. Best believes that the current volatility prevailing in the Qatari stock market, where most of TIIC's share investments are listed, will result to a decline in revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. reserves by year-end 2006. This is likely to result in a decline in risk-adjusted capitalisation, though A.M. Best expects it to remain strong due to the continuation of strong retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . Investment concentration risk remains high as evidenced by the fact that 65% of total investments at year-end 2005 were shares in a single company. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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