KUALA LUMPUR, Sept 24 (Bernama) -- A.M. Best has affirmed the financial strength rating (FSR) of A++ (superior) and long-term issuer credit rating (long-term ICR) of ‘aa+’ for Samsung Fire & Marine Insurance Co Ltd (SFM), South Korea.
At the same time, it affirmed the FSR of A (excellent) and the long-term ICR of ‘a’ for SFM’s wholly-owned subsidiary, Samsung Reinsurance Pte Ltd (SRE), Singapore, as well as a FSR of A- (excellent) and the long-term ICRs of ‘a-’ for Samsung Vina Insurance Co Ltd (SVI), Vietnam and PT Asuransi Samsung Tugu (AST), Indonesia.
The outlook of these credit ratings is stable, the global rating agency said in a statement.
The ratings of SFM reflect its balance sheet strength, which A.M. Best categorises as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management (ERM).
SFM’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
The company’s large absolute capital base, low level of underwriting leverage and its prudent investment strategy also support its robust capitalisation.
SFM’s limited exposure to long-tail risks and tight internal capital monitoring practices add stability to its strong capitalisation.
SFM has outperformed the industry in operating profitability consistently over the past five years, while demonstrating highly-stable underwriting profitability.
The company’s stable investment income stream, which is composed mostly of interest and dividend income, supports its strong operating performance.
SFM is an indisputable market leader in South Korea’s non-life insurance industry with about a quarter of the market share in terms of direct premium written.
SRE is a small regional reinsurer mainly focused in Southeast Asia and strategically important to SFM in its effort to expand internationally.
SVI is 75 per cent-owned by SFM and strategically important because it offers coverage to Samsung Group companies and other KIA in Vietnam, a major destination of South Korean investments in Southeast Asia.
AST is a joint venture between SFM and PT Asuransi Tugu Pratama Indonesia, Tbk which have 70 per cent and 30 per cent ownership, respectively.
It is a small player in Indonesia’s non-life insurance market and mostly underwrites niche businesses of Samsung Group and other KIA in Indonesia.
For more information, visit www.ambest.com
-- BERNAMA
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