Trust Re will receive US$130 million in replacement funds from its parent company following adverse economic conditions and a ratings downgrade.
According to a statement by the Bahrain-based reinsurer, the injection from Nest Investments Holdings Ltd is part of the company’s process of “finalising its new corporate governance framework, which will restore its position of strength and drive it to its fullest potential,” citing “the impact of regional geo-politics on economic conditions.”
In 2018, Trust Re encountered a delay in releasing its audited financial statements, leading to ratings downgrades from AM Best. Its credit rating decreased from A- (Excellent) to B++ (Good), while its long-term issuer credit rating was downgraded to “bbb+” from “a-”.
“Trust Re has experienced the most testing period since its establishment in 1989, and management has dealt with these challenges readily, while maintaining an open dialogue with its clients,” said Talal Al Zain, the company’s CEO who was appointed in April.
“On behalf of the senior management team, I would like to pay tribute to the support of our clients, stakeholders and to the commitment and dedication of the Trust Re management and employees.”
Al Zain added that Trust Re has been profitable for the last decade and its balance sheet and liquidity position remain very strong, with renewals for financial year 2019 all above budget.
