KUALA LUMPUR, Nov 11 (Bernama) -- Global credit rating agency AM Best has revised the outlooks to positive from stable and affirmed the financial strength rating of B+ (Good) and the long-term issuer credit rating of “bbb-” (Good) of PGA Sompo Insurance Corporation, Philippines.
According to a statement, these credit ratings reflect PGA Sompo’s balance sheet strength, which AM Best assesses as strong as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The outlook revisions to positive are based on AM Best’s expectation of PGA Sompo’s continued solid operating performance over the medium term while maintaining its strong balance sheet strength.
PGA Sompo’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which remained at the strongest level at end-2021, as measured by Best’s capital adequacy ratio.
Notwithstanding this, the company has a small absolute capital base which increases the sensitivity of capital adequacy to changes in performance and stressed scenarios.
PGA Sompo has a conservative investment strategy, with invested assets principally consisting of cash, deposits and fixed-income securities.
AM Best assesses PGA Sompo’s operating performance as adequate. The company has demonstrated a track record of sound operating profitability over the past five years with an average return-on-equity ratio of 8.4 per cent (2017-2021).
Underwriting results over this period were driven by reinsurance commission income generated on ceded business, with higher commissions in recent years having supported improved results.
Headquartered in the United States, AM Best does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
-- BERNAMA
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