KUALA LUMPUR, Dec 16 -- AM Best has affirmed the Financial Strength Rating of A (excellent) and the Long-Term Issuer Credit Rating of ‘a’ of China Taiping Insurance (HK) Company Limited [CTPI(HK)] Hong Kong.
In a statement, AM Best said the outlook of these credit ratings was stable.
The ratings reflect CTPI(HK)’s balance sheet strength, which AM Best classified as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The insurance company continues to maintain robust risk-adjusted capitalisation, supported by an organic accumulation of retained earnings, an improving quality of investment assets, prudent reserving practices and comprehensive reinsurance programmes.
According to a statement, CTPI(HK) has demonstrated a track record of positive underwriting results over the past five years, despite thin profit margins.
Investment assets continue to provide a stream of stable and favourable returns via interest, rental and dividend income.
Over the short to intermediate term, AM Best expects CTPI(HK)’s operating performance to remain highly dependent on its investment performance, while underwriting profitability can be maintained at a stable, yet low level.
The company ranked third in Hong Kong’s non-life insurance market based on gross premium written last year, and remained a leading player in key business lines including motor, property damage, statutory general liability and marine insurance.
-- BERNAMA
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