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Best’s News & Research Service - May 21, 2015 01:24 PM (EDT)

A.M. Best Upgrades Ratings of China Taiping Insurance (Singapore) Pte. Ltd

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Singapore //BestWire// - A.M. Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to "a" from "a-" of China Taiping Insurance (Singapore) Pte. Limited (CTIS) (Singapore). The outlook for both ratings has been revised to stable from positive.

The ratings reflect CTIS' balance sheet strength and financial performance. Furthermore, the ratings consider expected parental capital support if required as well as group operational and reinsurance support.

CTIS' risk-adjusted capitalization remains favorable. Underwriting leverage remains low as capital has grown faster than underwriting risk. CTIS' financial performance has been slightly above the overall Singapore insurance market, with both underwriting and investment contributing positively and with little volatility. While CTIS remains a small participant in Singapore's overall non-life market, it remains one of the leading providers in the market's profitable bond segment.

An offsetting factor includes continued negative results in CTIS' workers compensation line, while overall underwriting results are concentrated in the market's small bond segment. CTIS has grown its contractors' and engineering all risk business with high gross exposures and large account concentrations, while its solvency margin remains moderate compared with competitors. Net exposures however are managed down significantly through reinsurance (proportional, non-proportional and facultative).

The company is well-positioned at its current rating level.

Negative rating pressure could result from a deterioration of CTIS financial performance or any large net retained event losses. Any unfavorable re-assessment of CTIS' significance to the group could also result in negative pressure.

The methodology used in determining these interactive ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .

Key insurance criteria reports utilized:


  • Catastrophe Analysis in A.M. Best Ratings

  • Rating Members of Insurance Groups

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.



Singapore Financial Strength Press Release Insurance Issuer Credit Rating Best's Credit Rating Action Rating Event


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