AM Best affirms COSCO SHIPPING Captive Credit Ratings

KUALA LUMPUR, Sept 18 -- AM Best has affirmed the Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of ‘a’ of COSCO SHIPPING Captive Insurance Co Ltd (COSCO SHIPPING Captive) China.

The outlook of these Credit Ratings (ratings) is stable, according to a statement.

The ratings reflect COSCO SHIPPING Captive’s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also reflect the wide range of support the company receives from its parent, China COSCO SHIPPING Corporation Limited, which AM Best perceives to benefit from strong government support.

COSCO SHIPPING Captive’s risk-adjusted capitalisation remained at the strongest level in 2019, as measured by Best’s Capital Adequacy Ratio.

With initial start-up capital of RMB 2 billion (US$286 million), a level much higher than its captive peers in Asia Pacific, AM Best expects the company to maintain an abundant buffer in its risk-adjusted capitalisation to support its risk profile. (US$1 = RM4.122)

For more information, visit www.ambest.com.

-- BERNAMA