A.M. Best Upgrades Ratings of Trust International Insurance Company B.S.C. ''c'' Bahrain; Revises Outlook to Stable.OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to B++ (Very Good) from B+ (Very Good) and the issuer credit rating to "bbb" from "bbb-" of Trust International Insurance Company B.S.C. (c) Bahrain (TIIC TIIC The Idiots In Charge TIIC Those Idiots In Control ), an energy and property reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. . The outlook for both ratings has been revised to stable from positive. The rating action reflects TIIC's improving risk-adjusted capitalisation supported by good anticipated 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. . However, the company is still highly dependent on retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. , although net retention on its existing portfolio is likely to increase to approximately 20% in 2005 (compared to 14% in 2004). The company has also entered into a retrospective 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 one of its subsidiaries, Trust Underwriting Limited, a corporate Lloyd's vehicle that will be fully retained, increasing TIIC's net retention to between 30%-35% in 2005. A.M. Best believes the company is likely to achieve good after-tax profits of approximately USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8 million in 2005, translating into a return on premium of approximately 8.5% despite an expected deterioration in the combined ratio to 75%. This reflects the softening of the market in the niche business lines where the company operates and the retrospective quota share agreement. TIIC achieved a technical profit above A.M. Best's expectation in 2004 with a combined ratio of 55.5%. TIIC is likely to write gross premiums of approximately USD 95 million in 2005 as the company continues to expand its diversified energy and property book in the Arabic countries (which is anticipated to contribute an additional USD 6.5 million). However, an additional USD 22 million will be written through the retrospective quota share agreement. 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 http://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 http://www.ambest.com. |
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