HONG KONG, Feb 29 (Bernama) -- A.M. Best has affirmed the financial
strength of B++ (Good) and the issuer credit rating of "bbb" of Tugu
Insurance Company Limited (Tugu) (Hong Kong). The outlook for both
ratings is stable.
The rating affirmations reflect Tugu's strong risk-adjusted
capitalization, conservative investment portfolio and initiatives
undertaken to improve underwriting stability. Tugu's risk-adjusted
capitalization, as measured by the Best's Capital Adequacy Ratio (BCAR),
remains strong with a relatively low level of net premium leverage and
low investment risk profile. The company mainly invests in cash and
bonds that provide good liquidity to serve its claims obligations, while
its investment portfolio also contributes a stable stream of interest
income to net profits. The company has implemented initiatives to reduce
underwriting volatility by slowing premium growth in Hong Kong's
employee compensation insurance segment and by diversifying its revenue
sources toward overseas business.
http://www.bernama.com/bernama/v8/newsindex.php?id=1220184
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