KUALA LUMPUR, Nov 7 (Bernama) -- AM Best has affirmed the financial strength rating (FSR) of A (excellent) and the long-term issuer credit rating of A (excellent) of KB Insurance Company Ltd (KBI) (South Korea).
According to a statement, the outlook of these credit ratings (ratings) is stable.
The ratings reflect KBI’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 ratings also reflect the support that the company receives from its parent, KB Financial Group Inc (KB Group) and its strategic importance to KB Group.
As a wholly owned subsidiary of KB Group, one of the largest financial holding companies in South Korea, KBI remained the fourth largest non-life insurer in South Korea with a stable market share of approximately 13%, based on gross premium written in 2021.
KBI’s risk-adjusted capitalisation has remained at a very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR).
KBI’s operating performance is assessed as adequate with a weighted five-year average consolidated return-on-equity ratio of 7.8% (2017-2021) and an operating ratio of 96.6%.
The company’s underwriting performance improved materially in 2021 and in the first half of 2022, mainly driven by favourable auto line performance as a result of prior rate increases and reduced claims frequency amid the prolonged COVID-19 pandemic, as well as an improved expense ratio.
Investment income remains a major source of earnings for KBI with a stable trend in its net investment returns.
--BERNAMA
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