KUALA LUMPUR, Aug 17 (Bernama) -- The financial strength rating of A- (excellent) and the long-term issuer credit rating of ‘a-’ of China BOCOM Insurance Company Limited (CBIC) Hong Kong has been affirmed by A.M. Best. The outlook of these ratings is stable.
The ratings reflect the company’s balance sheet strength which A.M. Best categorised as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management, a statement said.
CBIC’s risk-adjusted capitalisation as measured by Best’s Capital Adequacy Ratio (BCAR) remains at the strongest level and is attributed in part to the company’s low underwriting leverage.
The company’s capital and surplus grew steadily and organically in the past five years, underpinned by strong investment results and full retention of operating profits.
The company is exposed to credit risk and liquidity risk, as well as country concentration risk in its investment portfolio, which consists primarily of fixed income investment in China state-owned enterprises and contains a material portion of non-rated bonds.
Positive rating actions could occur if the company demonstrates significant improvement in its market position while maintaining a stable and profitable operating performance while negative rating actions could occur if there is material deterioration in its operating performance.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. More details at www.ambest.com.
-- BERNAMA
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