KUALA LUMPUR, March 6 (Bernama) -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Mongolia’s Mandal Daatgal JSC (Mandal).
According to AM Best in a statement, the outlook of these Credit Ratings (ratings) is stable and concurrently, the agency has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect Mandal’s balance sheet strength, which AM Best assessed as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Mandal’s balance sheet strength is supported by its risk-adjusted capitalisation, which AM Best estimated to be at the very strong level as of year-end 2022, as measured by Best’s Capital Adequacy Ratio.
However, the absolute size of its capital base remains small at MNT 29.1 billion or US$8.3 million. (US$1=RM4.47)
Mandal’s operating performance has been strong and consistent, with key operating metrics generally outperforming those of its regional peers.
During fiscal year 2022, the company’s combined ratio exceeded 100 per cent, mainly due to higher personnel expenses amid high inflation, as well as a higher-than-expected number of large losses in both the motor physical damage line and the commercial property line.
In response, Mandal has implemented various initiatives to stabilise and improve its prospective underwriting performance, which AM Best expects will help strengthen Mandal’s underwriting and operating results.
In AM Best’s opinion, Mandal’s business profile currently benefits from its strong control over its distribution, low-acquisition cost structure, and expertise in the risks that it intends to underwrite and retain in its domestic market.
-- BERNAMA
No comments:
Post a Comment