AM BEST REMOVES FROM UNDER REVIEW WITH POSITIVE IMPLICATIONS, AFFIRMING CIC GUAM'S CREDIT RATINGS

KUALA LUMPUR, May 17 (Bernama) -- AM Best has removed from under review with positive implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb+’ (Good) of Century Insurance Company (Guam) Limited (CIC Guam).

In a statement, AM Best said the outlook assigned to these Credit Ratings (ratings) was stable.

The ratings reflect CIC Guam’s balance sheet strength, which AM Best assessed as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

These ratings were initially placed under review on July 3, 2019 following an announcement that DB Insurance Co Ltd (DBI) entered into an agreement with CIC Guam’s parent company, Tan Holdings Corporation (THC), to acquire an 80 per cent stake in each of THC’s three insurance subsidiaries.

Based on AM Best’s recent exchange with company management, THC and DBI have terminated the pending acquisition.

This rating action follows AM Best’s completed assessment of CIC Guam’s recent financial condition and its current business plan.

The rating affirmation mainly reflects CIC Guam’s very strong balance sheet strength and adequate operating performance.

Overall, risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, is assessed at the strongest level.

CIC Guam mainly focuses on non-life insurance in Guam, primarily on commercial line businesses.

There is no significant concentration in its product mix, but the company’s narrow geographic focus is a major factor that has constrained its business profile assessment.

-- BERNAMA