KUALA LUMPUR, Sept 22 (Bernama) -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa+” (Superior) of Samsung Fire & Marine Insurance Co Ltd (SFM), South Korea and its subsidiaries.
In a statement, AM Best said the credit ratings, which have a stable outlook, reflected its balance sheet strength, which was assessed as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM).
SFM’s risk-adjusted capitalisation is expected to remain comfortably at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio, supported by its robust absolute capital base of KRW11 trillion (US$8.7billion) as at year-end 2022. (US$1=RM4.68)
It has a long-term track record of strong operating performance supported by highly stable underwriting performance with a low level of combined ratio compared with its peers and robust investment profits.
The company’s net income increased in 2022, primarily due to an improvement in its largest business line, long-term insurance, as a result of alleviated pressure on medical indemnity profitability and enhanced persistency ratios.
SFM is the market leader in South Korea’s non-life segment with approximately 22 per cent market share in terms of gross premiums written in 2022 and has superior brand power being a part of the wider Samsung Group.
In addition, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of PT Asuransi Samsung Tugu (AST), with stable outlooks of these ratings.
The ratings of AST reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate ERM, as well as recognise the wide range of support provided by AST’s parent, SFM.
AST is a joint venture between SFM and PT Asuransi Tugu Pratama Indonesia Tbk, which have 70 per cent and 30 per cent shareholding, respectively, focusing mainly on underwriting risks related to Samsung group affiliates and other Korean companies in Indonesia, which AM Best expects to remain largely unchanged over the medium term.
-- BERNAMA
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