Fitch Ratings said it has affirmed “Societe Tunisienne de Reassurance’s” (Tunis Re) National Insurer Financial Strength (National IFS) Rating at ‘AA(tun)’. The Rating Outlook is Stable.
The National IFS Rating reflects the leading position of Tunis Re in the Tunisian reinsurance market, as well as its strategic role within the economy of Tunisia, underpinned by its strong ties with its cedants, retrocessionaires and the Tunisian State (B/Negative).
The rating agency said its assessment of the company’s business profile is constrained by increasing diversification into high-risk geographies, with limited potential for expansion into sound-quality international business.
Tunis Re’s credit fundamentals were robust in 2020 despite the coronavirus pandemic and two major exceptional claims, including the August 2020 Beirut explosion, stressed Fitch, saying it expects the company’s fundamentals will remain robust in 2021.
The company has demonstrated continued resilience to shocks through challenging years for global reinsurance, depreciation of the Tunisian dinar, and the 2011 social uprising in Tunisia. This was due largely to the company’s sound management, low risk appetite, sound-quality retrocessionaires, and strong ties with its cedents and the Tunisian state, said Fitch.