Trust Re primed to regain rating, says group CEO Talal Al Zain

Talal Al Zain, group CEO of Trust Re, said the reinsurer is in a position to go back to the rating agencies to regain its credit rating after it was withdrawn at the end of 2018.

The withdrawal was prompted by a delay in the release of the firm’s audited financial statements and a need to strengthen its corporate governance.

Following this, the firm focused on introducing a new corporate governance framework and appointed a legal firm in the MENA region to assess its legal framework and compliance functions. The reinsurer also created a ‘data room’ that holds all its documents including a rolling three-year bank statement in a move to improve transparency.

Al Zain said that while the firm was not contemplating having an initial public offering (IPO) at this stage, the requirements it has now put in place “are actually close to an IPO requirement”.

“We have an account receivable which the shareholder is in the process of paying, and we have completed and published our financials for 2017/18,” he said.

“Now, for 2019, we’re going back to our normal reporting period, which is Q1 of the following year. Having done all that we can now go to our rating agencies and start the process to get back our rating, as soon as possible.”

The business, which focuses on emerging markets, MENA, Africa, Asia in general and South East Asia, Eastern Europe and Russia, views Asia as a very important part of its operations.

Al Zain said the region is key because of the potential business there and the size of the economies.

“That’s why we have a branch in Labuan with a corresponding office in Kuala Lumpur, so we could be closer to our clients in the region,” he added.
“When the business lost its rating we ended up losing most of the business we have in Asia, although we were able to keep some,” Al Zain said.
“Of course we would like to expand this.”

For the time being, the reinsurer does business with existing clients and companies, and has been underwriting through A- reinsurance partners.

“We have a subsidiary, Trust Insurance Management (TIM), a managing general agent, through which we channel some of the Asian business covering all classes of business, treaty and facultative as well as life and non-life.

“But there’s nothing better than doing it under your own umbrella with the right ratings, and that is something we are looking forward to,” he concluded.