HIC Credit Ratings remain under review with developing implications status - AM Best

KUALA LUMPUR, March 26 -- AM Best has maintained the under review with developing implications status for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb’ of Hyundai Insurance (China) Co Ltd (HIC) China.

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

These ratings were placed under review with developing implications on July 30, 2019, following an announcement that HIC planned to raise additional capital through four new investors, according to a statement. On March 10, last year, HIC obtained regulatory approval to receive capital injections from four new investors, namely Legend Holdings Corporation (Legend Holdings); Dirun (Tianjin) Technology Co Ltd (Dirun); Anhui Easy-Biz Digital Technology Co Ltd; and, Ningbo Meishan Bonded Port Area Sequoia Yaosheng Equity Investment Partnership.

Following the capital injections, HIC’s paid-in capital increased to RMB 1,667 million (US$240 million) as of 2020-end from RMB 550 million (US$79 million) in 2019.(US$1 = RM4.146)

Hyundai Marine & Fire Insurance Co Ltd’s stake in HIC was diluted to 33 per cent from 100 per cent, whilst Legend Holdings and Dirun each hold a 32 per cent stake.

As the new board of directors appointment has been delayed by the COVID-19 pandemic, HIC’s ratings will remain under review until AM Best concludes a full analysis on how the latest business plan will impact the company’s credit profile.

More details at www.ambest.com.

-- BERNAMA