KUALA LUMPUR, Dec 11 -- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ of Korean Reinsurance Company (KRE) South Korea.
In a statement, the global credit rating agency, AM Best said the outlook of these Credit Ratings (ratings) was stable.
The ratings reflect KRE’s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management.
KRE’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, is assessed as being at the strongest level, supported by solid and stable internal capital generation over the past five years.
The company’s balance sheet strength is also underpinned by its strong financial flexibility, proven by a track record of successful hybrid bond issuance in overseas and domestic capital markets, as well as its conservative investment portfolio that is focused on good quality fixed income securities.
As the only local reinsurer in South Korea, KRE maintains a dominant position with a share of approximately 60 per cent of the non-life reinsurance market.
Given its long-term relationship with primary insurers, profound market knowledge, and better pricing capabilities derived from its immense market database, AM Best expects the company’s lead position in the domestic market to remain unchallenged over the medium term despite increasing competition.
Negative rating actions could occur if there is a material decline in its risk-adjusted capitalisation triggered by large-scale catastrophe losses, or there is significant deterioration in its operating performance.
More details at www.ambest.com
-- BERNAMA
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