KUALA LUMPUR, Aug 16 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A- (excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of China BOCOM Insurance Company Limited (CBIC), Hong Kong.
The stable outlook of these credit ratings reflects CBIC’s balance sheet strength, which AM Best categorised as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
It also reflects the wide range of support that the company receives as a wholly-owned subsidiary of the Bank of Communications Co Ltd (BOCOM), a large state-owned banking group in China and CBIC’s strategic importance to the group.
The company has generated net operating profits consistently over the past five years, which contributed to its capital growth through full profit retention and helped mitigate capital volatility arising from changes in the market value of its investment assets.
It maintains a diversified but small underwriting portfolio in Hong Kong’s non-life market and receives extensive business development and distribution support from BOCOM’s banking network in Hong Kong, mainland China and overseas.
While positive rating actions are unlikely to occur over the near term, negative rating actions could occur if there is a substantial decline in CBIC’s risk-adjusted capitalisation, a material deterioration in its operating performance or if support from BOCOM weakens notably.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. More information at http://www.ambest.com.
-- BERNAMA
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