KUALA LUMPUR, Sept 20 -- AM Best has affirmed the Financial Strength Rating of A (excellent) and the Long-Term Issuer Credit Rating of ‘a’ of COSCO SHIPPING Captive Insurance Co Ltd (COSCO SHIPPING Captive) China.
In a statement, the global credit rating agency with an exclusive focus on the insurance industry said the outlook of these credit ratings was stable.
The ratings reflect COSCO SHIPPING Captive’s balance sheet strength, which AM Best describes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
In addition, the ratings reflect the wide range of support the company receives from its parent, China COSCO SHIPPING Corporation Limited, which AM Best perceives to benefit from strong government support.
COSCO SHIPPING Captive’s risk-adjusted capitalisation remained at the strongest level last year, as measured by Best’s Capital Adequacy Ratio, and is supported by very low underwriting leverage, a prudent reinsurance programme and conservative investment portfolio.
The insurance company underwrites mainly marine-related business for the group and its affiliates, as well as other risks stemming from the group’s operations including cargo, liability and commercial property.
As a start-up company, COSCO SHIPPING Captive faces execution risk in achieving its business plans, although this is mitigated via conservative assumptions and regular experience reviews.
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