A.M. Best Upgrades Ratings of China Taiping Insurance (Singapore) Pte. Ltd. to A (Excellent)

A.M. Best Upgrades Ratings of China Taiping Insurance (Singapore) Pte. Ltd. to A (Excellent)

CONTACTS:  
Faitn Tan 
Associate Financial Analyst
+65 6589 8400, ext. 212
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Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
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Chi Yeung Lok
Senior Financial Analyst
+65 6589 8400, ext. 211
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Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
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SINGAPORE, MAY 21, 2015

A.M. Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to "a" from "a-" of China Taiping Insurance (Singapore) Pte. Limited (CTIS) (Singapore). The outlook for both ratings has been revised to stable from positive.

The ratings reflect CTIS' balance sheet strength and financial performance. Furthermore, the ratings consider expected parental capital support if required as well as group operational and reinsurance support.

CTIS' risk-adjusted capitalization remains favorable. Underwriting leverage remains low as capital has grown faster than underwriting risk. CTIS' financial performance has been slightly above the overall Singapore insurance market, with both underwriting and investment contributing positively and with little volatility. While CTIS remains a small participant in Singapore's overall non-life market, it remains one of the leading providers in the market's profitable bond segment.

An offsetting factor includes continued negative results in CTIS' workers compensation line, while overall underwriting results are concentrated in the market's small bond segment. CTIS has grown its contractors' and engineering all risk business with high gross exposures and large account concentrations, while its solvency margin remains moderate compared with competitors. Net exposures however are managed down significantly through reinsurance (proportional, non-proportional and facultative).

The company is well-positioned at its current rating level.

Negative rating pressure could result from a deterioration of CTIS financial performance or any large net retained event losses. Any unfavorable re-assessment of CTIS' significance to the group could also result in negative pressure.

The methodology used in determining these interactive ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

  • Catastrophe Analysis in A.M. Best Ratings
  • Rating Members of Insurance Groups

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.


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A.M. Best’s credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

A.M. Best receives compensation for interactive rating services provided to organizations that it rates. A.M. Best may also receive compensation from rated entities for non-rating related services or products offered by A.M. Best. A.M. Best does not offer consulting or advisory services. For more information regarding A.M. Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, read the A.M. Best Code of Conduct.

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