Sun Hung Kai Properties Insurance Limited Credit Ratings affirmed - AM Best

KUALA LUMPUR, March 28 -- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ (Excellent) of Sun Hung Kai Properties Insurance Limited (SHKPI) Hong Kong.

According to a statement, the outlook of these Credit Ratings (ratings) is stable.

The ratings reflect SHKPI’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.

SHKPI’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is maintained at the strongest level.

The higher-risk assets, including non-investment-grade bonds and unlisted equities, and some sector concentration in the company investment portfolio exposed its risk-adjusted capitalisation to considerable market and credit risks.

However, AM Best considers the company’s capital buffer is sufficient to absorb the associated investment risks. The company’s reinsurance programme remained appropriate, with reinsurer panels in good credit quality.

SHKPI is a wholly owned subsidiary of Sun Hung Kai Properties Limited, one of the largest property development and investment conglomerates in Hong Kong. It benefits from its parental network to write most of its business from associated and subsidiary companies.

The stable outlooks reflect AM Best’s expectation that SHKPI will maintain its strong operating performance, supported by a continued profitable underwriting portfolio, low acquisition cost structure, and positive investment returns in the intermediate term.

Negative rating actions could occur if there is significant deterioration in SHKPI’s operating performance, for example, due to lower investment returns or weakened underwriting results.

United States-headquartered AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry.

More details at www.ambest.com.

-- BERNAMA