Monday 24 November 2014

A.M. Best Affirms Ratings Of LIG Insurance Company Limited


KUALA LUMPUR, Nov 24 (Bernama) -- A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of LIG Insurance Company Limited (LIG) (South Korea). The outlook for both ratings is stable.

The rating affirmations reflect LIG's adequate risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). Although the company's risk-adjusted capitalization declined between the fiscal year-end of March 2013 and December 2013, it remained adequate to support the current ratings. The company's risk-based capital (RBC) ratio has experienced downward pressure since fiscal year 2011, mainly driven by the multi-year period of strong premium growth and the tightening solvency regime. The company's RBC ratio was 183% as of June 2014, showing an improvement compared with 173% at year-end 2013; this is attributed to the increase in retained earnings and valuation gain in available-for-sale investments.

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