KUALA LUMPUR, March 22 (Bernama) -- AM Best has affirmed Macau’s China Taiping Insurance (Macau) Company Limited (CTIM) financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent).
These credit ratings (ratings), which have a stable outlook reflect CTIM’s balance sheet strength, that AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
In a statement, AM Best said the company’s risk-adjusted capitalisation, as measured by its Capital Adequacy Ratio, remained stable and was at the strongest level as of year-end 2022.
Based on the unaudited financial statements, CTIM’s capital level remained robust and further improved to 870 million Macanese pataca (US$110 million) at year-end 2023, with its investment strategy remaining conservative and stable, as well as the majority of its investment assets in cash and investment grade bonds. (US$1=RM4.73)
The company delivered a five-year average return-on-equity ratio of 19 per cent from 2018 to 2022, and it continued to generate profit in 2023, supported by positive underwriting and investment results.
CTIM’s net combined ratio improved to 70.5 per cent in 2022, due to its lower loss ratio during the pandemic period, and its combined ratio remained stable during 2023, though there was some uptick in the loss ratio, which was partially offset by an improvement in the commission ratio.
Its investment results turned positive in 2023, a rebound from the negative returns caused by capital market volatility during 2022 and its investment performance is expected to continue to support its overall operating performance through stable streams of interest, dividend and rental income in the future.
CTIM maintains a long track record as the leader in Macau’s non-life insurance segment and has a market share of approximately 34 per cent as of the third quarter of last year, based on gross premiums written.
The company’s underwriting portfolio and distribution channels are stable and diversified, while it continues to develop its online channel and explore cross-selling opportunities in its affiliated life insurance company, China Taiping Life Insurance (Macau) Company Limited.
-- BERNAMA
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