Thursday 18 May 2017

A.M. BEST AFFIRMS CREDIT RATINGS OF CHINA TAIPING INSURANCE (SINGAPORE) PTE. LTD.



SINGAPORE, May 18 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of China Taiping Insurance (Singapore) Pte. Ltd. (CTIS)
(Singapore), a wholly owned subsidiary of China Taiping Insurance
Holdings Company Ltd. The outlook of these Credit Ratings (ratings) is
stable.

The ratings reflect CTIS’ track record of strong earnings
and solid risk-adjusted capitalization. CTIS has recorded good
underwriting results despite challenging market conditions. With a
leading market share in Singapore’s bond insurance market, CTIS is able
to offer product bundling with its profitable bond business, which has
resulted in favorable claims experience. The company’s operating
performance has outperformed the industry average in each of the past
years leading up to 2016.

An offsetting rating factor is CTIS’
exposure to the construction industry, as claims experience could be
impacted negatively by economic cycles in the construction sector.
Furthermore, the company’s expense ratio has been rising due to expenses
incurred, as it grows in Singapore and across Southeast Asia.
Positive
rating actions are unlikely in the near term. Negative rating actions
may occur if there is material deterioration of CTIS’ risk-adjusted
capitalization or operating results from expansion initiatives.

Ratings
are communicated to rated entities prior to publication. Unless stated
otherwise, the ratings were not amended subsequent to that
communication.


This press release relates to
Credit Ratings that have been published on A.M. Best’s website. For all
rating information relating to the release and pertinent disclosures,
including details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M. Best’s 
Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best
Faith Tan
Financial Analyst
+65 6589 8400, ext. 212
faith.tan@ambest.com
or
Chi Yeung Lok
Associate Director
+65 6589 8400, ext. 211
chi-yeung.lok@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
 

Source: A.M. Best


A.M. BEST AFFIRMS CREDIT RATINGS OF CHINA TAIPING INSURANCE (SINGAPORE) PTE. LTD.

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