KUALA LUMPUR, March 31 (Bernama) -- Global credit rating agency AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ of Sun Hung Kai Properties Insurance Limited (SHKPI) Hong Kong.
The outlook of these Credit Ratings (ratings) is stable, reflecting SHKPI’s balance sheet strength, which the United States-headquartered AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
SHKPI’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio, according to a statement.
As the company’s investment portfolio consists of higher risk assets including non-investment grade bonds and unlisted equities, SHKPI’s risk-adjusted capitalisation is exposed to considerable market and credit risks.
However, AM Best considers the company’s capital buffers sufficient to absorb the risks associated with those investments, while the company’s balance sheet strength also benefits from good quality of capital, strong liquidity and a well-diversified reinsurance panel that comprises reinsurers with good financial standing.
SHKPI’s operating performance has been consistently strong over the past five years, supported by a five-year average return on equity of 18 per cent (2016-2020), driven mainly by positive investment income and strong underwriting results.
SHKPI is a wholly owned subsidiary of Sun Hung Kai Properties Limited, one of the largest property development and investment conglomerates in Hong Kong.
The stable outlooks reflect AM Best’s expectation that SHKPI will maintain its strong operating performance, supported by a continued profitable underwriting portfolio, low acquisition cost structure and positive investment returns.
For more information, visit www.ambest.com.
-- BERNAMA
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