AM Best has reaffirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for International Traders Insurance Co., Ltd. (ITICO) based in the Turks and Caicos Islands, British West Indies. The outlook for these ratings remains stable.
The affirmed ratings reflect ITICO’s very strong balance sheet, robust operating performance, neutral business profile, and appropriate enterprise risk management. ITICO’s risk-adjusted capitalization is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by consistent historical profitability. However, the execution risk associated with ITICO’s expansion and diversification initiatives partially offsets these positive factors.
As a reinsurance company with 40 years of experience, ITICO operates out of the Turks and Caicos Islands and maintains representative offices in Panama and Colombia, providing access to the Latin America and Caribbean markets. ITICO is owned by a pure holding company domiciled in the Cayman Islands. The company is noted for its commercial relationships with ceding companies and tailored reinsurance programs.
As of December 2023, ITICO’s portfolio was primarily composed of fire insurance (51%), group life (16%), with the remainder in other business lines. The company is geographically diversified in 37 countries, primarily across Latin America and the Caribbean.
ITICO’s risk-adjusted capitalization remains at the strongest level for historical and projected years, supported by a conservative investment base, low retention profile, and high-quality capital. The company’s management efficiently utilizes capital, which may lead to future dividends.
ITICO has maintained sustained profitability despite fluctuations in gross written premiums, with a contained loss ratio due to prudent underwriting practices. Stable investment income has moderately supported ITICO’s overall income generation.
Positive rating actions could result from continued growth in the company’s capital base and successful consolidation of its business strategy, while maintaining strong operating performance. Conversely, negative rating actions could arise from reduced risk-adjusted capitalization due to premium growth, changes in investment, underwriting risk profile, or an unfavorable development in ITICO’s business strategy, increasing concentration risk or a shift in operating performance metrics.
For detailed information on these ratings and pertinent disclosures, visit AM Best’s Recent Rating Activity web page. For proper use of Best’s Ratings & Assessments, refer to the Guide 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, operating in over 100 countries. For more information, visit www.ambest.com.
