KUALA LUMPUR, March 22 (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 Sun Hung Kai Properties Insurance Limited (SHKPI), Hong Kong.
The outlook of these Credit Ratings (ratings) is stable, reflecting AM Best’s expectation that SHKPI will maintain its strong operating performance, supported by a continued profitable underwriting portfolio, low acquisition cost structure and positive investment returns in the intermediate term.
The ratings reflect SHKPI’s balance sheet strength, which AM Best assessed as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
SHKPI’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, is maintained at the strongest level, according to a statement.
The company’s higher-risk assets, including non-investment-grade bonds and unlisted equities, and some sector concentration in the company investment portfolio exposed its risk-adjusted capitalisation to considerable market and credit risks.
However, investment exposure to higher-risk assets was decreased during fiscal year 2022, and AM Best considers the company’s capital buffer sufficient to absorb the associated investment risks.
Though SHKPI’s operating performance during fiscal year 2022 was negatively affected by deterioration in investment performance, its overall operating performance has been consistently strong and above the market average over the past few years.
Supported by its parent in distribution with minimal gross acquisition expenses, SHKPI’s underwriting results continue to outperform industry peers.
SHKPI is a wholly owned subsidiary of Sun Hung Kai Properties Limited, one of the largest property development and investment conglomerates in Hong Kong, benefiting from its parental network to write most of its business from associated and subsidiary companies.
For more information, visit www.ambest.com.
-- BERNAMA
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