KUALA LUMPUR, Feb 12 (
Bernama) -- A.M. Best has downgraded the financial strength rating to B++ (good)
from A- (excellent) and the long-term issuer credit rating to 'bbb+' from 'a-'
of ECICS Ltd (ECICS) Singapore and the outlook of these ratings has been
revised to stable from negative.
A.M. Best, in a statement said, the rating downgrades were driven by an increased combined ratio that compared unfavourably with the industry average, negatively impacting results in recent years.
Since 2015, competition has eroded profitability in ECICS's core credit insurance, bonds and guarantee business lines.
In response, ECICS has introduced various initiatives to seek growth in new lines of business of which the results to date, however, have not met expectations, and a turnaround in the company's performance has yet to materialise.
Underpinning the company's ratings is its balance sheet strength, which A.M. Best categorises as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
A.M. Best expects the company's balance sheet strength to remain at a strong level over the near term, supported by low underwriting leverages and good asset quality.
-- BERNAMA
A.M. Best, in a statement said, the rating downgrades were driven by an increased combined ratio that compared unfavourably with the industry average, negatively impacting results in recent years.
Since 2015, competition has eroded profitability in ECICS's core credit insurance, bonds and guarantee business lines.
In response, ECICS has introduced various initiatives to seek growth in new lines of business of which the results to date, however, have not met expectations, and a turnaround in the company's performance has yet to materialise.
Underpinning the company's ratings is its balance sheet strength, which A.M. Best categorises as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
A.M. Best expects the company's balance sheet strength to remain at a strong level over the near term, supported by low underwriting leverages and good asset quality.
-- BERNAMA
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