A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of China Taiping Insurance (Singapore) Pte. Ltd. (CTIS) (Singapore).
CONTACTS:
Angela Chow
Associate Financial Analyst
+852-2827-3407
angela.chow@ambest.com
Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
james.peavy@ambest.com
Jeff Yeung
Associate Director
+852-2827-3413
jeff.yeung@ambest.com
HONG KONG, MAY 30, 2013
The revised rating outlook reflects CTIS' solid risk-adjusted capitalization, consistently profitable underwriting performance and enhanced enterprise risk management. The ratings also acknowledge the operational support the company receives from China Taiping Insurance Group (HK) Company Limited in terms of investment, reinsurance and risk management.
CTIS' risk-adjusted capitalization level, as measured by Best's Capital Adequacy Ratio (BCAR), is supportive of its current ratings. CTIS has been able to maintain favorable underwriting and investment results in the past five years as a result of the company's strategy to strengthen its profitable insurance book and sharpen its risk selection, along with its regular rate adjustment and prudent investment strategy. It is expected that CTIS' positive retained earnings will continue to contribute to the growth of the company's capitalization.
With long operating history in Singapore, CTIS has established a solid distribution network in the local market. CTIS' strong Chinese background enables the company to explore business opportunities with Chinese enterprises, and it continues to build up a strong agency force and bancassurance networks. Additionally, CTIS has explored new business in the electronic network by launching mobile applications.
Partially offsetting these positive rating factors are the competitive landscape in Singapore and consistently loss-making work injury compensation portfolio.
Future positive rating actions could occur if CTIS shows a continuation of favorable operating results to support its growing capitalization, while expanding its business profile and further enhancing its enterprise risk management.
Alternatively, negative rating actions could occur if CTIS' operating performance deteriorates, resulting in a substantial decline in its risk-based capitalization level.
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.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
A.M. Best Asia-Pacific Limited is a subsidiary of A.M. Best Company. A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.
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