Monday 31 October 2022

Bank Of China Group Insurance Company Limited's Credit Ratings affirmed -- AM Best

KUALA LUMPUR, Oct 31 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Hong Kong's Bank of China Group Insurance Company Limited (BOCG Insurance).

According to a statement, the outlook of these Credit Ratings (ratings) is stable.

The ratings reflect BOCG Insurance’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The risk-adjusted capitalisation level of BOCG Insurance remained at the strongest level as of year-end 2021, as measured by Best’s Capital Adequacy Ratio.

The company’s capital and surplus continued to grow organically in 2021, supported by profit retention and favourable capital gains.

Over the 2017-2021 period, BOCG Insurance remained profitable with solid return-on-equity.

The company’s net profit in 2021 was underpinned by solid investment returns, supported by its share of profits from investments in associated insurance companies, coupled with a stable stream of interest and dividend income from its fixed income-oriented investment portfolio.

In 2021, BOCG Insurance ranked 11th in terms of Hong Kong onshore non-life gross written premium, with a market share of 2.7 per cent. The company’s underwriting portfolio remains diversified with four major product lines – namely property damage; accident and health; motor; and, general liability.

Going forward, the company is expected to focus on direct business, while maintaining the premium scale of its inward reinsurance portfolio.

AM Best expects the company to continue leveraging the broad branch network of its banking parent to tap the vast customer base and obtain profitable business.

-- BERNAMA

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