AM BEST AFFIRMS CHINA’S ZHONGAN CREDIT RATINGS

KUALA LUMPUR, Nov 10 (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 China’s ZhongAn Online P&C Insurance Co Ltd (ZhongAn).

In a statement, AM Best said the outlook of these ratings are stable and reflect ZhongAn’s balance sheet strength, supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio.

The company boosted its capital base through an initial public offering on the Hong Kong Stock Exchange in 2017 with its capital and surplus at RMB 16.8 billion (US$2.6 billion) as of 2021. (US$1=RM4.71)

In terms of investments, about half of ZhongAn’s financial assets are invested in fixed-income securities, while the remaining consists of cash and deposits, asset management products, equities, funds, and trust schemes.

ZhongAn has leveraged technology capability to provide insurance solutions and business model services to its domestic and overseas clients, which has resulted in revenue growth and an expanded customer base.

AM Best views ZhongAn’s innovativeness as a supportive factor to its business profile, which will provide long-term financial enhancement.

In addition, the company invested in a virtual banking business in Hong Kong in 2020 to achieve greater synergy with its technological capabilities.

ZhongAn’s banking and technology business segments remain in start-up phases, and AM Best expects that these areas will continue to exert pressure on the company’s overall profitability over the short to intermediate term.

-- BERNAMA