CHINA TAIPING INSURANCE (MACAU) CREDIT RATINGS AFFIRMED - AM BEST

KUALA LUMPUR, March 24 (Bernama) -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of China Taiping Insurance (Macau) Company Limited (CTIM).

The outlook of these Credit Ratings (ratings) is stable and the ratings reflect CTIM’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

According to a statement, CTIM’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, remained stable and is at the strongest level as of year-end 2021.

The company’s capital level remained robust at the similar level in 2022, and its investment strategy remained conservative and stable, with the majority of its investment assets in cash and investment grade bonds.

Delivered a five-year average return on equity of 18.7 per cent during 2017 to 2021, based on audited financials, CTIM continues to be profit generating in 2022, supported by positive underwriting results, and partially offset by unfavourable investment results.

The company’s net combined ratio improved to 71 per cent in 2022 from 82 per cent in 2021, while the ratio is expected to normalise as the local economy recovers from the COVID-19 pandemic.

Its investment results turned negative in 2022 due to market volatility but are expected to continue to support the company’s 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 close to 34 per cent in 2022 based on gross premium written.

The company’s underwriting portfolio and distribution channel were stable and diversified, while the company continues to develop its online channel and explore cross-selling opportunities in its affiliated life insurance company in Macau, China Taiping Life Insurance (Macau) Company Limited.

For more information, visit www.ambest.com.

-- BERNAMA