KUALA LUMPUR, Oct 21 (Bernama) -- Global credit rating agency AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Hong Kong’s Dah Sing Insurance Company (1976) Ltd (DSI).
The outlook of these credit ratings (ratings) is stable, according to a statement.
The ratings reflect DSI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
It also reflects the parental support from Dah Sing Financial Holdings Ltd (DSFH) in terms of capital, brand recognition, business development, product distribution, risk management and operations.
As measured by Best’s Capital Adequacy Ratio, DSI’s risk-adjusted capitalisation remains at the strongest level.
The company’s equity investment exposure is higher than its peers after a large capital injection from DSFH in 2017.
DSI reported a material decline of HKD234.5 million (US$30 million) in capital and surplus in the first half of 2022, mainly due to a plunge in the market value of DSI’s equity portfolio (US$1=RM4.73).
AM Best expects the company to implement robust investment selection and diversification strategies, as well as appropriate investment controls, to mitigate the high investment risk exposure.
As a small to a medium-sized player in Hong Kong’s non-life insurance segment, DSI maintained a market share of approximately one per cent, with a gross premium written of HKD604 million in 2021.
More details at www.ambest.com.
-- BERNAMA
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