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FOR IMMEDIATE RELEASE
HONG KONG - APRIL 26, 2017 12:39 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Shinkong Insurance Company Limited (Shinkong Insurance) (Taiwan). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Shinkong Insurance’s sound risk-adjusted capitalization, solid market position as Taiwan’s third-largest non-life insurer and diversified distribution strategy. Despite reporting large claims related to the Tainan earthquake in 2016, Shinkong Insurance achieved positive operating results that were underpinned by favorable investment performance during the year.
An offsetting rating factor is the continued competitive market conditions in Taiwan, which could put pressure on the company’s underwriting profitability.
While positive rating actions are not likely, negative rating actions could occur if the company experiences significant and continued deterioration in operating performance or if there is a substantial decline in its risk-adjusted capitalization.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.