Best’s News & Research Service - July 21, 2017 11:41 AM (EDT)
A.M. Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of KB Insurance Co., Ltd.
- July 21, 2017 11:41 AM (EDT)
Hong Kong //BestWire// - A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of KB Insurance Co., Ltd. (KB Insurance) (South Korea). The outlook assigned to these Credit Ratings (ratings) is stable.
The rating actions follow the conversion of KB Insurance into a wholly owned subsidiary of the KB Financial Group Inc. (KB Group) and the company’s subsequent delisting from the Korea Exchange. The KB Group previously owned 39.81% of KB Insurance’s shares.
A.M. Best’s discussions with KB Insurance’s management team on the company’s business plan and strategic direction are still at an early stage. Nonetheless, the rating actions reflect the financial and operational benefits that KB Insurance will derive from being a key operation within a larger and stronger financial organization. The KB Group’s major operating entity, the Kookmin Bank, is South Korea’s largest bank by total assets. The KB Group, for its part, will benefit from the diversification and synergy that will come from transforming KB Insurance into a fully owned non-life insurance subsidiary.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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