KUALA LUMPUR, March 2 (Bernama) -- A.M. Best has downgraded the financial strength rating to B+ (good) from B++ and the long-term issuer credit rating to 'bbb' from 'bbb' of Tugu Insurance Company Ltd. (TIC) Hong Kong.
The outlook of the ratings is negative.
A.M. Best, in a statement said the ratings reflected TIC's balance sheet strength, which was categorised as strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).
The negative outlooks are based primarily on uncertainty regarding TIC's capitalisation and it also reflects the company's low liquidity buffers.
While A.M. Best expects TIC to be capitalised to satisfy regulatory requirements, no details are available to assess its risk-adjusted capitalisation after the change in ownership.
The company has faced challenges in finding profitable sources of premium growth, which has led to combined ratios that have been above industry average in the five years to Dec 31, 2017.
-- BERNAMA
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