Luen Fung Hang Insurance Company Limited Credit Ratings affirmed - AM Best

KUALA LUMPUR, Oct 9 -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ of Luen Fung Hang Insurance Company Limited (LFH) Macau.

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

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

LFH’s balance sheet strength continues to be supported by a robust level of risk-adjusted capitalisation.

Supported by positive operating results and profit retention, the company’s capital and surplus continued to grow organically in 2019 to MOP 567 million (US$71 million). (US$1 = RM4.15)

LFH’s investment strategy remains stable and conservative with a majority of its investments held in bonds and cash.

Going forward, the company plans to invest more in bonds while maintaining a similar level of exposure inequity investments.

LFH ranked second in the Macau non-life insurance market, with a market share of more than 20 per cent in terms of gross premium written 2019. It continues to leverage the distribution channel support from its bank shareholders and maintains a competitive edge in acquiring good quality business through the bancassurance channel.

-- BERNAMA