HONG KONG, Feb 18 (Bernama-BUSINESS WIRE) -- A.M. Best has downgraded the financial strength rating to B++ (Good) from A- (Excellent) and the issuer credit rating to “bbb” from “a-” of Hyundai Insurance (China) Co., Ltd. (HIC) (China). Following these actions, the ratings remain under review with negative implications.
The rating actions reflect material deterioration in HIC’s risk-adjusted capitalization following the recent large scale losses caused by the Tianjin Port explosions on Aug. 12, 2015 and the full write-off of the significant reinsurance recoverable related to the loss from the Hynix factory fire in 2013. Although HIC maintains low underwriting leverage and a conservative investment portfolio, the large scale losses in recent years led to the substantial decrease in capital and surplus and widening operating losses. In addition, the ratings also consider the wide range of support HIC receives from its parent company, Hyundai Marine & Fire Insurance Co., Ltd. (South Korea), which is currently working on a recapitalization plan for HIC.
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