AM Best confirms credit ratings of Bank of China Group Insurance Company Limited – InsuranceNewsNet

0

HONG KONG–(BUSINESS WIRE)–
AM Best affirmed the issuer’s financial strength rating of A- (Excellent) and the issuer’s long-term credit rating of “a-” (Excellent) from Bank of China Group Insurance Company Limited (BOCG Insurance) (hong kong). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect the strength of BOCG Insurance‘s balance sheet, which AM Best assesses as strong, as well as its adequate operational performance, neutral business profile and appropriate management of business risks.

The level of risk-adjusted capitalization of BOCG Insurance remained at the highest level at the end of 2021, as measured by Best’s capital adequacy ratio (BCAR). The company‘s capital and surplus continued to grow organically in 2021, supported by earnings retention and favorable capital gains. Approximately half of BOCG Insurance’s investment portfolio is made up of equity interests in associated companies, while the remainder is made up of investment grade bonds and cash and cash equivalents. Despite significant exposure to illiquid investments, the company maintains an adequate level of liquidity to support its business activities.

Over the period 2017-2021, BOCG Insurance remained profitable with a solid return on equity. The company’s net profit in 2021 was supported by strong investment returns, supported by its share of profits from investments in associated insurance companies, coupled with a stable stream of interest and dividend income from its investment portfolio focused on fixed income securities. The company improved its loss ratio in 2021 thanks to continued efforts to improve its technical profitability, which led to an underwriting profit and a combined ratio below 100%. This change is explained by the decrease in the net incurred claims ratio for the Property, Motor, Accident and Health branches.

In 2021, BOCG Insurance ranked 11th in terms of hong kong non-life gross written premiums on land, with a market share of 2.7%. The company’s underwriting portfolio remains diversified with four main product lines: property damage; accident and health; engine; and general liability. Going forward, the company is expected to focus on direct business, while maintaining the premium scale of its inbound reinsurance portfolio. AM Best expects the company to continue to leverage its banking parent’s extensive branch network to tap into the vast customer base and secure profitable business.

Negative rating actions could occur if the company experiences a significant deterioration in its risk-adjusted capitalization. Negative rating actions could also arise in the event of a significant deterioration in its operating profitability, for example due to investment returns more than offset by sustained and adverse technical losses.

Ratings are communicated to rated entities before publication. Unless otherwise indicated, the ratings have not been changed as a result of this communication.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Rating Activity web page. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

src=”https://cts.businesswire.com/ct/CT?id=bwnewssty=20221028005350r1sid=acqr8distro=nxlang=fr” style=”width:0;height:0″ />

Ken Lau
Senior Financial Analyst

+852 2827 3426

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200 ext. 5159

[email protected]

James Chan
Associate Director

+852 2827 3418

[email protected]

Al Slavin
Communications Specialist

+1 908 439 2200 ext. 5098

[email protected]

Source: AM Best

Share.

About Author

Comments are closed.