AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of International Traders Insurance Co., Ltd. (ITICO) (Turks and Caicos Islands, British West Indies). The outlook of these Credit Ratings (ratings) is stable.

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

The ratings also reflect the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by its consistent historical profitability. Partially offsetting these positive rating factors is the inherent execution risk of ITICO’s expansion and diversification initiatives.

ITICO is a reinsurance company with 40 years of experience in the sector. The company is domiciled in the Turks and Caicos Islands, and has representative offices in Panama and Colombia, through which it provides clients access to the Latin America and Caribbean markets. ITICO is owned by a pure holding company that is domiciled in the Cayman Islands.

Within the reinsurance market, ITICO stands out for its commercial relationships with the ceding companies and the structuring of reinsurance programs based on clients’ needs.

As of December 2023, ITICO’s business portfolio was mainly composed of fire (51%), with 16% from group life, and the rest in other business lines. In addition to Panama, the company is diversified geographically in 37 other countries, mainly across Latin America and the Caribbean.

ITICO’s risk-adjusted capitalization stands at the strongest level for historical and projected years, as measured by BCAR, due to its conservative investment base, low retention profile and a good quality of capital. Conversely, management is prone to use its capital efficiently, which might lead to dividends going forward.

The company’s overall results are characterized by sustained profitability, despite fluctuations in its volume of gross written premium. ITICO’s loss ratio has remained contained due to its prudent underwriting practices. The company’s investment income has showed a stable trend, moderately supporting ITICO’s income generation.

Factors that could lead to positive rating actions include the continued growth of the company’s capital base in the medium term, supportive of the strongest level of risk-adjusted capitalization, as measured by BCAR, and successful consolidation of company’s business strategy in targeted locations, while maintaining strong operating performance. Negative rating actions could occur if premium growth or changes in the investment or its underwriting risk profile reduce risk-adjusted capitalization to a level that no longer supports the ratings. Negative rating actions may also occur if ITICO’s business strategy has an unfavorable development and increases concentration risk, or if there is a shift in the company's operating performance metrics to levels no longer consistent with the strong assessment level.

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Olga Rubo, FRM Senior Financial Analyst +52 55 1102 2720, ext. 134 olga.rubo@ambest.com

Alfonso Novelo Senior Director, Analytics +52 55 1102 2720, ext. 107 alfonso.novelo@ambest.com

Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 christopher.sharkey@ambest.com

Al Slavin Senior Public Relations Specialist +1 908 882 2318 al.slavin@ambest.com