OREANDA-NEWS. NRA LLC rating agency has affirmed its ‘AAA’ national scale and its ‘iA-’ global scale reliability ratings on Trust Re.

The rating affirmation for Trust Re reflects its strong capitalization, many years' experience in reinsuring complex industrial (particularly energy sector-related) risks, improving gross performance metrics, high reinsurance capacity and solid solvency position.

The rating is constrained by the high competition in the world insurance market and the possibility that the company may lose some of its business in Russia due to the increasing exchange, economic and political risks that the Russian insurers are facing.

Trust International Insurance & Reinsurance Co BSC (с) (Trust Re) was founded in 1981. In 1989, control of the company passed over to Nest Investments (Holdings) Ltd (Jersey, the Channel Islands), which currently holds a 99.1% interest. Trust Re’s owners also have interests in finance and real estate.

The company is licensed as an insurance and reinsurance entity and is regulated by the Central Bank of Bahrain.

Last year, Trust Re’s assets increased by 11.4% and totaled US\\$ 1.13 billion as of Dec. 31, 2013. Its capital grew by 28.2% to US\\$ 298.36 million, mostly due to the paid-in capital increase of US\\$ 40 million.

Trust Re provides reinsurance protection to direct insurers in Asia, Africa, Central and Eastern Europe, Asian CIS states, Cyprus and Turkey.

The reinsurer’s branches operating in Cyprus and Malaysia also act as underwriting centers. Through a UK-based subsidiary Trust Underwriting Limited (TUL) Trust Re has a presence in the Lloyd's market.

The company focuses on facultative and obligatory reinsurance in the following classes: Oil & Energy, Marine, Property,Liability, Engineering and Alternative Energy. The business is adequately diversified. The company mainly operates in China, India, Russia, Saudi Arabia, South Korea and Turkey. 2013 saw an increasing share of Trust Re’s business generated in Central and Eastern Europe.

 According to Trust Re’s consolidated financial statements audited by Ernst & Young Bahrain, the volume of gross premiums written increased to US\\$ 398.03 million in 2013. The combined ratio remained virtually unchanged at 92.86%.

Trust Re’s operating effectiveness improved in 2013: after-tax profit totaled US\\$ 18 million compared with US\\$ 17.84 million in 2012.

In 2013, net technical reserves reached US\\$ 427 million, a 15.7% increase year-on-year. The adequacy of reserves is annually confirmed by a professional actuary registered with the Central Bank of Bahrain. Reserves are further independently peer reviewed by an international actuarial consultancy based in London.

The company is a member of regional and international professional organizations, including the Federation of Afro-Asian Insurers and Reinsurers (FAIR), Bahrain Insurance Association (BIA) and the Federation of African National Insurance Companies (FANAF). Trust Re is also the manager of the FAIR Oil & Energy Insurance Syndicate.

The company’s investment policy is reasonably conservative. Trust Re mostly invests in deposits, fixed income bonds and shares.

Reinsurance policy is viewed as well-balanced and adequate in relation to risks taken by the company. The majority of retrocessionaires have high ratings from the leading international rating agencies.

The company’s liquidity and solvency are regarded as strong. Actual solvency margin is 4.84x the required margin.