SHANGHAI ELECTRIC INSURANCE LIMITED CREDIT RATINGS ASSIGNED -- AM BEST

KUALA LUMPUR, Feb. 25 (Bernama) -- AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of ‘a-’ to Shanghai Electric Insurance Limited (SEIL) Hong Kong.

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

Incorporated in 2018 in Hong Kong, SEIL is a single-parent captive of Shanghai Electric (Group) Corporation, one of the largest power generation and industrial equipment manufacturing enterprises in China and is wholly owned by the Shanghai municipal government.

SEIL serves as the group’s risk management and insurance arm. It mainly assumes premiums from the group and affiliates through inward arrangements with onshore and offshore insurers and reinsurers.

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

AM Best assesses SEIL’s balance sheet strength at the very strong level, supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio.

The captive mainly underwrites large commercial accounts and has arranged an appropriate reinsurance programme with highly rated reinsurers in view of its low-frequency, high-severity risk profile.

AM Best expects the company to strengthen its capital gradually through full retention of profits and maintain a sufficient capital buffer to support its risk profile over the short to intermediate term.

As the first insurance licensee within the group, SEIL receives support in areas of inward business with good claims experience, operations and risk management, as well as investment and capital management.

-- BERNAMA