AM BEST AFFIRMS CREDIT RATINGS TO CHINA TAIPING INSURANCE (MACAU) CO., LTD.

HONG KONG, March 30 (Bernama-BUSINESS WIRE) -- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of China Taiping Insurance (Macau) Co., Ltd. (CTIM) (Macau). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect CTIM’s balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the support the company receives from its parent, China Taiping Insurance Holdings Company Limited (CTIH). CTIM’s risk-adjusted capitalization continued to improve in 2019, mainly driven by organic growth in the company’s capital through profit retention, as well as the settlement of large claims and reinsurance recoverables related to prior accident years. The company’s investment strategy remains conservative with the majority of the investment portfolio allocated in low risk assets, including cash and bonds. CTIM’s underwriting and investment portfolio continues to generate profit and support the company’s capital growth. The company’s loss ratio has remained low over the past two years, partially benefiting from favorable reserve movements, while its operating expenses are broadly stable. CTIM’s investment portfolio remains supportive of the company’s overall operating performance by delivering a stable stream of investment income. CTIM maintains a leading position in Macau’s non-life insurance market, with a balanced product mix and diversified distribution channels. The company also enjoys a wide range of support from its parent and affiliates in areas including brand recognition, reinsurance and investment, as well as financial support when needed.

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