HONG KONG, March 18 (Bernama-BUSINESS WIRE) -- AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Nan Shan General Insurance Co., Ltd. (Nan Shan General) (Taiwan). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Nan Shan General’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).Nan Shan General was established in 1962. On 1 September 2016, it was fully acquired by Nan Shan Life Insurance Co., Ltd. (Nan Shan Life), which is owned by Ruen Chen Investment Holding Co., Ltd. (Ruen Chen), a Taiwan-based joint venture funded by Ruentex Group (collective stake of 80% of Ruen Chen) and Pou Chen Group (20%).
Nan Shan General’s very strong level of balance sheet strength is underpinned by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as the protective reinsurance arrangements, the diversified fixed-income oriented investment portfolio and strong liquidity. AM Best expects the company’s BCAR score to exhibit a downward trend over the forecast period as increases in underwriting and investment risks outpace organic growth in capital and surplus due to the moderately high dividend payout ratio. Notwithstanding, the company’s capital position is expected to remain supportive of its current ratings over the short to intermediate term.
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