Monday 7 November 2022

AM Best affirms Credit Ratings of Fubon Insurance

KUALA LUMPUR, Nov 4 (Bernama) -- Global credit rating agency AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Taiwan’s Fubon Insurance Co Ltd.

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

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

Fubon Insurance’s risk-adjusted capitalisation remained at the most substantial level at year-end 2021, as measured by Best’s Capital Adequacy Ratio.

The company’s adjusted capitalisation, including special reserves provisioned for the non-compulsory auto liability insurance business, continued to grow organically in 2021, through partial profit retention and favourable capital gains.

“The company continued to adopt a conservative investment strategy in 2021, with most of the invested assets in cash and cash equivalents, bonds, as well as a moderate exposure to domestic equities,” AM Best said.

Fubon Insurance continued to generate profit in 2021, supported by positive underwriting and investment results. Its business continued to expand in 2021 with a gross premium written (GPW) growth of 10.9 per cent, while its underwriting experience in the overall underwriting portfolio remained stable and profitable till 2021.

In addition, the company’s investment results remained supportive of its overall operating results through stable interest and dividend income streams.

Capital gains through other comprehensive income partially supported organic capital growth.

Fubon Insurance maintained its market-leading position in the Taiwan non-life market and continued to strengthen its market presence in 2021, accounting for approximately a quarter of the non-life market in terms of GPW.

The company continues to leverage the business network of its parent group in sourcing business while maintaining a moderately diversified underwriting portfolio in terms of products.

-- BERNAMA

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