Hong Leong Insurance (Asia) Limited Credit Ratings affirmed - AM Best

KUALA LUMPUR, Jan 11 -- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of Hong Leong Insurance (Asia) Limited (HLIA) Hong Kong.

In a statement, the global credit rating agency, AM Best said the outlook of these Credit Ratings (ratings) is stable.

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

HLIA’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio. A major offsetting factor was the company’s moderate reinsurance dependency. However, the potential credit risk is mitigated by HLIA’s prudent reinsurance programme with high quality reinsurers. HLIA has long track record of operating profitability, supported by consistently positive underwriting results that outperformed industry peers, and evidenced by an average five-year combined ratio lower than 80 per cent.

The company maintains a small market presence in Hong Kong’s general insurance market with a strong focus on personal line insurance, such as travel insurance and domestic helper insurance. The stable outlooks reflect AM Best’s expectation that HLIA will maintain positive underwriting results that outperform the industry average, supported by a low acquisition cost structure, and favourable claims experience, as well as a gradual recovery of premium revenue from its core product lines. More details at www.ambest.com.

-- BERNAMA