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FOR IMMEDIATE RELEASE
HONG KONG - AUGUST 04, 2017 09:16 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a’’ of Blue Cross (Asia-Pacific) Insurance Limited (Blue Cross) (Hong Kong). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Blue Cross’ persistent favorable operating performance with expense ratios over the past five years that were lower than those of its peers, as well as its strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings also account for Blue Cross’ continual efforts to diversify its distribution channels to more cost-effective direct and online channels.
Offsetting rating factors include the competitive group medical insurance market environment, which poses challenges to the balance between adequate pricing and business growth. In addition, financial market volatility could negatively impact Blue Cross’ capital and surplus through revaluation of investment reserve on available-for-sale assets.
Positive rating actions for Blue Cross are unlikely in the near term. Negative rating actions could occur if the company’s risk-adjusted capitalization continues to weaken, or if a deteriorating trend in underwriting profitability emerges.
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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