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FOR IMMEDIATE RELEASE
SINGAPORE - JUNE 24, 2016 01:03 PM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Thaire Life Assurance Public Company, Limited (Thaire Life) (Thailand). The outlook for each rating remains stable.
The ratings reflect Thaire Life’s strong risk-adjusted capitalization, favorable operating performance and good business profile in Thailand’s life reinsurance market.
Thaire Life’s risk-adjusted capitalization is supported by its moderate underwriting leverage and its conservative investment risk profile. In terms of operating performance, the company continues to generate good returns and maintain a stable combined ratio of less than 80%. While there has been performance deterioration in some lines of business, the diversification in its insurance underwriting portfolio has helped to limit the volatility of Thaire Life’s overall underwriting results.
Thaire Life is an established player in Thailand’s life reinsurance market. In addition to reinsurance capacity, the company offers value-added services in areas such as product development, distribution and risk management. These services help Thaire Life to strengthen its relationships with cedants.
An offsetting rating factor is the limited demand for reinsurance among direct life insurers. The company serves a market that is dominated by considerably larger cedants with high premium retentions and low reinsurance needs. In such an environment, limited growth in size and scale relative to cedants could diminish Thaire Life’s profile as a provider of reinsurance protection.
Positive rating actions are not likely at present. Negative rating pressure could result from weakening in the company’s business profile, deterioration in operating performance or a material decline in 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 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 see A.M. Best’s Recent Rating Activity web page.
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