KUALA LUMPUR, Dec 13 (Bernama) -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ (Excellent) of China Taiping Insurance (HK) Company Limited [CTPI(HK)] Hong Kong.
The outlook of these Credit Ratings (ratings) is stable, based on a statement.
The ratings reflect CTPI(HK)’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. It also incorporates the rating enhancement that CTPI(HK) receives from its parent, China Taiping Insurance Holdings Company Limited (CTIH).
CTPI(HK)’s very strong balance sheet strength is supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio.
Its capital and surplus (C&S) dropped by 3.8 per cent to HKD 5 billion (US$649 million) in 2020 mainly driven by asset impairment losses. (US$1 = RM4.210)
AM Best considers the company to have an adequate buffer in its risk-adjusted capitalisation to support its risk profile over the short to intermediate term.
CTPI(HK) reported a net loss in its bottom line in 2020 due to the aforementioned impairment losses, despite a track record of net profits over the past decade.
Going forward, AM Best expects the company’s operating performance to remain highly dependent on its investment performance, while uncertainty around the performance of the unlisted funds will add volatility to its profitability.
CTPI(HK) ranked third in Hong Kong’s non-life insurance market based on gross written premium in 2020, and its product lines consisted mainly of motor, accident and health (A&H), fire and general liability.
For more information, visit www.ambest.com.
-- BERNAMA
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