KUALA LUMPUR, Dec 15 -- Global credit rating agency, AM Best has assigned a Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of ‘bb+’ to Mandal Daatgal JSC (Mandal) Mongolia.
The outlook assigned to these Credit Ratings (ratings) is stable, according to a statement.
The ratings reflect Mandal’s balance sheet strength, which AM Best categorises as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Mandal’s strong balance sheet strength assessment is underpinned by its strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, albeit the absolute size of its capital and surplus (C&S) remains small.
Mandal was the first insurance company to be listed on the Mongolia stock exchange through an initial public offering in 2018. The company’s C&S grew by 160 per cent in 2018, supported by both the capital raised from its IPO and profit retention during the year.
The company’s capital continued to grow organically from retained earnings over the past few years and amounted to MNT 20.7 billion (US$7.9 million) as of year-end 2019. (US$1 = RM4.058)
The company’s investment portfolio mainly consists of short-term fixed-income investments including bonds and cash deposits, with a small exposure to equities.
Mandal’s strong operating performance is supported by positive operating results in recent years with a strong return on equity of above 30 per cent in 2019, while profit was largely retained with its first dividend paid during the same year.
The company’s business has expanded rapidly in recent years. Last year, it was the second largest player out of 14 non-life insurance companies in Mongolia’s non-life insurance market, based on gross premium written.
-- BERNAMA
No comments:
Post a Comment