KUALA LUMPUR, Oct 1 (Bernama) -- A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ of Taiping Reinsurance Company Limited (Taiping Re) Hong Kong.
The global rating agency has also affirmed Taiping Re’s wholly owned subsidiary, Taiping Reinsurance (China) Company Ltd. (Taiping Re China) China.
A.M. Best said in a statement that the outlook of these credit ratings is stable.
The ratings reflect Taiping Re’s balance sheet strength, which A.M. Best classified as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
According to the statement, the ratings also acknowledge the continued holistic implicit and explicit support from the parent company, China Taiping Insurance Holdings Company Limited (CTIH), in terms of capital and investment, as well as the high level of integration in business development and operations, in addition to risk management.
A.M. Best expects the company’s risk-adjusted capitalization to remain solid over the short to medium term, underpinned by the anticipated continued capital and financial support from the parent to offset the increasing risk profile.
Taiping Re’s non-life portfolio is geographically diversified with a focus in Asia while the company has also been actively expanding its life reinsurance business.
The ratings of Taiping Re China reflect its strategic importance to Taiping Re, as well as its high level of integration with, and the explicit support it receives from Taiping Re.
Taiping Re China is the primary revenue contributor to Taiping Re’s China-based business. The subsidiary accounted for approximately 52 per cent of Taiping Re’s consolidated non-life gross written premiums in 2017.
Offsetting rating factors include downward pressure on non-life underwriting margin stemming from the robust expansion in business from China. More details on www.ambest.com
-- BERNAMA
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