HONG KONG–(BUSINESS WIRE)–
AM Finest has affirmed the Monetary Power Ranking of A- (Glorious) and the Lengthy-Time period Issuer Credit score Ranking of “a-” (Glorious) of Financial institution of China Group Insurance coverage Firm Restricted (BOCG Insurance coverage) (Hong Kong). The outlook of those Credit score Rankings (scores) is steady.
The scores mirror BOCG Insurance coverage’s steadiness sheet power, which AM Finest assesses as robust, in addition to its sufficient working efficiency, impartial enterprise profile and applicable enterprise threat administration.
The danger-adjusted capitalisation degree of BOCG Insurance coverage remained on the strongest degree as of year-end 2021, as measured by Finest’s Capital Adequacy Ratio (BCAR). The corporate’s capital and surplus continued to develop organically in 2021, supported by revenue retention and beneficial capital features. Roughly half of BOCG Insurance coverage’s funding portfolio consists of pursuits in related corporations, whereas the rest consists of funding grade bonds and money and money equivalents. Regardless of materials publicity to illiquid investments, the corporate maintains an sufficient degree of liquidity to help its enterprise operation.
Over the 2017-2021 interval, BOCG Insurance coverage remained worthwhile with strong return-on-equity. The corporate’s web revenue in 2021 was underpinned by strong funding returns, supported by its share of earnings from investments in related insurance coverage corporations, coupled with a steady stream of curiosity and dividend earnings from its mounted income-oriented funding portfolio. The corporate improved its loss ratio in 2021 resulting from continued efforts to boost its underwriting profitability, which led to an underwriting revenue and a mixed ratio underneath 100%. This was attributable to the decrease web incurred loss ratio for property injury, motor, and accident and well being traces.
In 2021, BOCG Insurance coverage ranked eleventh when it comes to Hong Kong onshore non-life gross written premium, with a market share of two.7%. The corporate’s underwriting portfolio stays diversified with 4 main product traces: property injury; accident and well being; motor; and normal legal responsibility. Going ahead, the corporate is predicted to concentrate on direct enterprise, whereas sustaining the premium scale of its inward reinsurance portfolio. AM Finest expects the corporate to proceed leveraging the broad department community of its banking mum or dad to faucet the huge buyer base and procure worthwhile enterprise.
Detrimental ranking actions may happen if the corporate experiences a fabric deterioration in its risk-adjusted capitalisation. Detrimental ranking actions may additionally happen if there’s materials deterioration in its working profitability, for example, resulting from funding returns which might be greater than offset by sustained and unfavourable underwriting loss expertise.
Rankings are communicated to rated entities previous to publication. Except acknowledged in any other case, the scores weren’t amended subsequent to that communication.
This press launch pertains to Credit score Rankings which were revealed on AM Finest’s web site. For all ranking info referring to the discharge and pertinent disclosures, together with particulars of the workplace accountable for issuing every of the person scores referenced on this launch, please see AM Finest’s Current Ranking Exercise net web page. For added info concerning the use and limitations of Credit score Ranking opinions, please view Information to Finest’s Credit score Rankings. For info on the right use of Finest’s Credit score Rankings, Finest’s Efficiency Assessments, Finest’s Preliminary Credit score Assessments and AM Finest press releases, please view Information to Correct Use of Finest’s Rankings & Assessments.
AM Finest is a worldwide credit standing company, information writer and information analytics supplier specialising within the insurance coverage business. Headquartered in the USA, the corporate does enterprise in over 100 international locations with regional workplaces in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis. For extra info, go to www.ambest.com.
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