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FOR IMMEDIATE RELEASE
SINGAPORE - AUGUST 21, 2018 01:12 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of EQ Insurance Company Limited (EQI) (Singapore). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect EQI’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by low underwriting leverage and capital injections received from its parent company, Citystate Capital Asia Pte. Ltd.
Offsetting rating factors include EQI’s limited business profile and elevated combined ratio, which remains above industry peers. As a small player in the highly competitive Singapore market, EQI is undertaking various initiatives to establish a profitable niche. However, these initiatives are subject to execution risk and EQI’s combined ratio is expected to remain elevated during this transition period.
Positive rating actions are unlikely in the near term. Negative rating actions may occur from a deterioration in operating performance or business profile.
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.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.