AM BEST AFFIRMS TAIWAN’S UNION EXCELLENT CREDIT RATINGS

KUALA LUMPUR, May 21 (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-” (Excellent) of Taiwan’s Union Insurance Company Limited (Union).

The outlook of these credit ratings (ratings) is stable, reflecting Union’s very strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.

AM Best said Union’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which was at the strongest level at the end of 2025.

Union’s risk-adjusted capitalisation is expected to remain at the strongest level over the intermediate term, supported by partial retention of positive operating earnings, while its regulatory solvency capital to maintain a healthy capital buffer above minimum requirements.

Other supporting factors include a comprehensive reinsurance programme, favourable financial flexibility, and a consistent investment strategy, according to AM Best in a statement.

A medium-sized insurer in Taiwan’s non-life market, Union reported stable operating results in 2025, with a return on adjusted capital and surplus of 11.8 per cent, based on AM Best’s calculations.

The company’s top-line performance has remained stable, despite a slightly lower-than-average premium growth rate in its voluntary motor segment. Union has refined its underwriting strategy to improve profitability while expanding its accident and health, as well as commercial liability, businesses.

AM Best said underwriting profitability improved consistently, with a record low net combined ratio of 91.1 per cent in 2025, while net investment yield stood at 3.0 per cent, including capital gains and losses.

Union’s underwriting portfolio remains moderately diversified but slightly skewed toward motor insurance, with other key business lines including commercial fire, liability, and accident and health insurance.

-- BERNAMA