KUALA LUMPUR, Sept 28 -- Global credit rating agency, AM Best has maintained the under review with developing implications status for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb’ of Hyundai Insurance (China) Co Ltd (HIC) China.
The Credit Ratings reflect HIC’s balance sheet strength, which AM Best categorised as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
These ratings were placed under review with developing implications on July 30 last year, following an announcement that HIC planned to raise additional capital through four new investors.
On March 10, HIC obtained regulatory approval to receive capital injections from four new investors, namely Legend Holdings Corporation (Legend Holdings); Dirun (Tianjin) Technology Co Ltd (Dirun); Anhui Easy-Biz Digital Technology Co Ltd; and, Ningbo Meishan Bonded Port Area Sequoia Yaosheng Equity Investment Partnership.
Following the capital injections, HIC’s paid-in capital increased to RMB 1.7 billion (US$ 240 million) from RMB 550 million (US$ 79 million). (US$1 = RM4.166)
According to a statement, Hyundai Marine & Fire Insurance Co Ltd’s stake in HIC has been diluted to 33 per cent from 100 per cent, while Legend Holdings and Dirun each hold a 32 per cent stake.
As the new board of directors appointment has been delayed by COVID-19, HIC’s ratings will remain under review until AM Best concludes its discussions with the company’s shareholders and new management team.
More details at www.ambest.com.
-- BERNAMA
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