KUALA LUMPUR, Oct 14 -- AM Best has revised the outlook to stable from negative and affirmed the Financial Strength Rating of C- (weak) and the Long-Term Issuer Credit Rating of ‘cc’ of Capital Life Insurance Company Limited (CLI) Papua New Guinea.
The rating agency categorised the company’s balance sheet strength as weak, as well as its adequate operating performance, limited business profile and weak enterprise risk management.
The ratings factor in a neutral impact from the company’s 100 per cent ownership by Capital Insurance Group Limited.
The revision of the outlooks to stable from negative reflects AM Best’s expectation that the company’s balance sheet strength fundamentals will demonstrate an improving trend over the medium term.
The company has since implemented a number of remedial actions, including large premium rate adjustments and strengthening of policy conditions.
AM Best expects these steps to generate additional retained earnings over the medium term, which will bolster prospective risk-adjusted capitalisation.
The agency also expects CLI to report positive underwriting and operating earnings, driven by an anticipated improvement in the performance of its core medical portfolio.
More details on the credit ratings at http://www.ambest.com
-- BERNAMA
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