Beacon Insurance Company Ltd receives ‘good creditworthiness’ from Caricris

The Caribbean Information and Credit Rating Services Ltd (Caricris) has reaffirmed the currently assigned issuer/corporate credit ratings of CariA- (foreign and local currency ratings) on the regional rating scale and ttA- on the TT national scale to Beacon Insurance Company Ltd (Beacon).

Caricris – in a release issued on Thursday – said these ratings indicate Beacon’s creditworthiness level, adjudged in relation to other obligors in TT and the Caribbean.

Beacon’s creditworthiness level is good and the CariA- rating indicates its relative ability to meet its ongoing insurance obligations.

Caricris also maintained a stable outlook on the ratings, which is supported by the upcoming implementation of Beacon’s enterprise risk management (ERM) framework in the next six months.

The implementation of this framework is expected to enhance the company’s systems and procedures and have a positive impact on its business risk profile.

Beacon’s ratings continue to reflect its healthy capitalisation levels supported by its strong reinsurance programme. Additionally, its investment portfolio continues to be well diversified and underpins the company’s satisfactory asset quality, the release said.

However, Caricris said Beacon’s continued high reliance on insurance brokers for product distribution may threaten the stability of its earnings.

"Further tempering the rating is the company’s deteriorating financial performance, notwithstanding an increase in gross premiums", the release said.