Press Release - MAY 17, 2017
A.M. Best Affirms Credit Ratings of China Taiping Insurance (Singapore) Pte. Ltd.
| ||Faith Tan |
+65 6589 8400, ext. 212
Chi Yeung Lok
+65 6589 8400, ext. 211
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
SINGAPORE - MAY 17, 2017
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of China Taiping Insurance (Singapore) Pte. Ltd. (CTIS) (Singapore), a wholly owned subsidiary of China Taiping Insurance Holdings Company Ltd. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect CTIS’ track record of strong earnings and solid risk-adjusted capitalization. CTIS has recorded good underwriting results despite challenging market conditions. With a leading market share in Singapore’s bond insurance market, CTIS is able to offer product bundling with its profitable bond business, which has resulted in favorable claims experience. The company’s operating performance has outperformed the industry average in each of the past years leading up to 2016.
An offsetting rating factor is CTIS’ exposure to the construction industry, as claims experience could be impacted negatively by economic cycles in the construction sector. Furthermore, the company’s expense ratio has been rising due to expenses incurred, as it grows in Singapore and across Southeast Asia.
Positive rating actions are unlikely in the near term. Negative rating actions may occur if there is material deterioration of CTIS’ risk-adjusted capitalization or operating results from expansion initiatives.
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.