China Taiping Insurance (Singapore) Pte. Ltd. (CTIS) has been affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a". The outlook for each rating remains stable.
A.M. Best Affirms Ratings of China Taiping Insurance (Singapore) Pte. Ltd.
Associate Financial Analyst
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Chi Yeung Lok
Senior Financial Analyst
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SINGAPORE, May 18, 2016 A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of China Taiping Insurance (Singapore) Pte. Ltd. (CTIS) (Singapore). The outlook for each rating remains stable. CTIS is a wholly owned subsidiary of China Taiping Insurance Holdings Company Limited.
The ratings reflect CTIS' adequate risk-adjusted capitalization, good operating performance and the operational and reinsurance support from the group.
CTIS' operating performance has been good with contributions from underwriting and investment profit. Favorable investment returns have helped maintain CTIS' operating performance slightly above the Singapore insurance market. While CTIS remains a small participant in Singapore's overall non-life market, it remains one of the leading providers in the profitable bond segment.
These strengths are partially offset by a diminishing combined ratio advantage over its peers and negative underwriting results reported from the work injury compensation portfolio. Additionally, CTIS' exposure to the construction industry could leave results susceptible to downturns within that sector.
While positive rating actions are not likely, negative rating actions may result from a significant deterioration of the company's operating results or risk-adjusted capitalization from expansion initiatives.
Ratings are communicated to rated entities prior to publication. 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 see A.M. Best's Recent Rating Activity web page.
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