HONG KONG, March 17 (Bernama-BUSINESS WIRE) -- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of KBFG Insurance (China) Co., Ltd. (KBFG China) (China). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect KBFG China’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also reflect the wide range of support that the company receives from its parent, KB Insurance Co., Ltd., in areas including business development, reinsurance and investment.AM Best assesses KBFG China’s balance sheet strength at the very strong level, supported by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company continues to maintain a very low underwriting leverage, and a conservative investment portfolio comprising cash and bank deposits only. Due to its small capital base and the underwriting of large commercial accounts, KBFG China’s risk-adjusted capitalisation is exposed to volatility in the event of large losses. This is mitigated partially by its comprehensive reinsurance programme placed with financially sound reinsurers. The company has not paid dividends for the past five years and plans to continue retaining its profits fully to support growth over the short to medium term.
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