KUALA LUMPUR, Sept 29 (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 Cathay Century Insurance Company Limited (Cathay Century).
In a statement, AM Best said the credit ratings (ratings), which have a stable outlook, reflected Cathay Century’s balance sheet strength, which was assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Cathay Century’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, was at the very strong level at year-end 2022 and is expected to strengthen gradually over the short to intermediate term and be commensurate with the pre-pandemic level through earnings retention.
Other supportive factors of the balance sheet strength assessment include the company’s diversified investment portfolio that focuses on low-risk fixed-income securities, good liquidity, and comprehensive reinsurance arrangements.
Cathay Century remains the second-largest insurer in Taiwan’s non-life sector, with a market share of 12.8 per cent in terms of direct premiums written (DPW) in 2022. The company’s underwriting portfolio is diversified moderately with motor being a major line of business, accounting for over half of the company’s DPW in 2022, followed by fire, accident and health businesses.
The portfolio is skewed toward personal lines insurance products and the company continues to leverage the comprehensive business network of its parent group and affiliated distribution channels to grow its underwriting portfolio.
In addition, Cathay Century has refined and strengthened its risk management by reviewing product design and underwriting control, following the significant pandemic insurance claims. Cathay Financial Holding also has collaborated with Cathay Century to provide risk oversight support and resources.
-- BERNAMA
No comments:
Post a Comment