CHINA TAIPING INSURANCE (MACAU) CO LTD CREDIT RATINGS AFFIRMED -- AM BEST

KUALA LUMPUR, March 30 (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 Taiping Insurance (Macau) Co Ltd (CTIM) Macau.

The outlook of these Credit Ratings (ratings) is stable, according to a statement.

The ratings reflect CTIM’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

CTIM risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), remained stable and is at the strongest level. The company’s capital continues to grow in 2021 through partial profit retention and is supported by positive operating results.

The company’s investment strategy remained conservative and stable, with the majority of its investment assets in cash and investment grade bonds.

The company’s reinsurance programme remained comprehensive with reinsurer panels of good credit quality, notwithstanding, the reinsurance dependency of the company is moderate.

CTIM continues to be profit generating in 2021, supported by positive underwriting and investment results. While the company’s net loss ratio remained stable, its net expense ratio is showing an increasing trend, attributed to growing management expenses.

CTIM is well-positioned at its current rating level. Negative rating actions could occur if there is a material decline in the company’s risk-adjusted capitalisation or a significant and sustained deteriorating trend in its operating performance.

A weakening credit profile of the parent company, China Taiping Insurance Holdings Company Limited, also may have a negative impact on CTIM’s ratings.

More details at www.ambest.com.

-- BERNAMA