KUALA LUMPUR, March 24 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of LIG Insurance (China) Co Ltd (LIG China) China.
According to a statement, the outlook of these Credit Ratings (ratings) is stable.
The ratings reflect LIG China’s balance sheet strength, which the global credit rating agency assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
United States-headquartered AM Best assesses LIG China’s balance sheet strength at the very strong level, supported by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio.
LIG China has generated net profits consistently over the past five years, derived mainly from stable investment income generated by its conservative investment portfolio.
The company’s underwriting performance has been marginal, with a volatile loss ratio due to its small net earned premium base albeit partly offset by a low operating expense ratio thanks to its favourable reinsurance commission income.
Going forward, the company projects net profits for the next three years, and AM Best expects its investment performance to continue to be the major driver of the company’s overall earnings, although its underwriting results can be volatile across years.
As a foreign-owned insurer focusing on servicing Korean Interests Abroad business, LIG China intends to maintain a stable underwriting book over the short term consisting of commercial property, construction and engineering, cargo, liability and accident, and health lines of business.
-- BERNAMA
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