KUALA LUMPUR, March 29 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A- (excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of LIG Insurance (China) Co Ltd (LIG China), and the outlook of these ratings is stable.
The ratings reflect LIG China’s balance sheet strength, which AM Best classifies as very strong, adequate operating performance, neutral business profile and appropriate enterprise risk management.
Moreover, the insurance company also received a wide range of support from its parent, KB Insurance Co., Ltd. in business development, reinsurance and investment.
LIG China’s risk-adjusted capitalisation remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by very low underwriting leverage and a highly conservative investment portfolio.
The company has generated positive nett profits consistently in the past five years, mainly attributable to a solid stream of interest income and low acquisition costs from its direct distribution channel.
Despite having small market share, LIG China occupies a niche market by focusing on servicing Korean Interests Abroad (KIA) operating in China - generating more than 90 per cent of the company’s revenue.
As a foreign-owned insurer concentrated on KIA businesses, LIG China is vulnerable to regulatory and political uncertainties in its operating environment.
-- BERNAMA
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