KUALA LUMPUR, May 17 -- AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of ‘a’ (Excellent) to Cathay Century Insurance Company Limited (Cathay Century) Taiwan.
The outlook assigned to these Credit Ratings (ratings) is stable, according to AM Best in a statement.
The ratings reflect Cathay Century’s balance sheet strength, which AM Best categorised as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Cathay Century’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, was at the strongest level last year.
The company has been strengthening its adjusted capital and surplus over the past years, with a five-year compounded average growth rate at 10.6 per cent, mainly contributed by partial profit retention and the accumulation of special reserves.
Cathay Century’s investment strategy remains stable and conservative, with a majority of its invested assets in low-risk fixed income securities.
The company has also arranged a comprehensive reinsurance programme with a reinsurer panel of good credit quality to mitigate undue underwriting risk, including catastrophe exposure.
Cathay Century is the second-largest insurer in Taiwan’s non-life market. The company’s underwriting portfolio is diversified moderately with the majority of its business in motor.
More details on the ratings at www.ambest.com
-- BERNAMA
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