KUALA LUMPUR, Aug 6 (Bernama) -- A.M. Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit rating of ‘a’ of Blue Cross (Asia-Pacific) Insurance Ltd (Blue Cross) Hong Kong and the outlook of these ratings is stable.
The ratings reflect Blue Cross’ balance sheet strength which A.M. Best categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management, a statement said.
Blue Cross’ risk-adjusted capitalisation remains solid, partially attributed to its diversified investment portfolio with strong liquidity and the gradual release of risk capital in tandem with the runoff of the life business.
It continues to focus on underwriting risk selection to strengthen its non-life portfolio, which has demonstrated a consistently profitable and improving trend in underwriting results, partially attributed to the stable and lower-than-peers expense ratio.
Blue Cross remains as a mid-sized insurer in Hong Kong’s highly competitive non-life market. Approximately 90 per cent of its gross premiums written was sourced from the accident and health line through a diversified distribution network.
The positive rating actions for Blue Cross are unlikely in the near term as negative rating actions could occur if there is a deteriorating trend in the company’s operating profitability or a significant decline in the company’s risk-adjusted capitalisation.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. More information at www.ambest.com.
-- BERNAMA
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