KUALA LUMPUR, Jan 16 (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 South China Insurance Co Ltd (South China Insurance), Taiwan.
The outlook of these Credit Ratings (ratings) is stable, according to a statement.
The ratings reflect South China Insurance’s balance sheet strength, which AM Best assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The company’s investment portfolio remained liquid and diversified with a majority of its assets held in investment grade bonds and cash. The company continues to manage currency risk in its investment portfolio through currency hedging.
AM Best notes that the company is exposed to a low and controlled level of ultimate claims arising from pandemic-related insurance products.
South China Insurance continued to be profit generating in 2021, as supported by positive underwriting and investment results.
The company’s business continued to expand in 2021 with a gross premium written growth of 7.6 per cent, while net combined ratio improved by 3.2 percentage points to 95.2 percent.
Its positive investment results continued to support the company’s overall operating performance in 2021 through a stable stream of interest and dividend income. South China Insurance remained profitable during the first three quarters of 2022.
South China Insurance remains a medium-sized insurer in Taiwan’s non-life market. The company’s underwriting portfolio remains moderately diversified with motor dominating its business.
The company continues to source its revenue from a diversified distribution network while leveraging cross-selling opportunities more broadly with its affiliates in Hua Nan Financial Holdings Co Ltd.
-- BERNAMA
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