HONG KONG--(BUSINESS WIRE)--A.M. Best Asia-Pacific Limited has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Wing Lung Insurance Company Limited (WLI) (Hong Kong). The outlook for both ratings is stable.
The rating affirmations reflect WLI’s strong risk-adjusted capitalization, favorable operating results and supportive reinsurance protection.
WLI’s capital and surplus strengthened to HKD 713 million at year-end 2013. The capital position benefited from organic growth via full profit retention over the past few years. It is considered to be supportive of the current, ongoing business development. WLI has delivered positive underwriting and investment results since 2010, mainly driven by a favorable trend in the claims experience within the company’s key business lines, namely employees’ compensation and motor, as well as profitable stream of interest and rental income from its diversified investment portfolio.
Partially offsetting factors include the increasing exposure to investment risks and the competitive operating environment in the Hong Kong non-life market.
Positive rating actions may occur if WLI can demonstrate a continued trend of capital strengthening and a consistently favorable operating performance.
Negative rating pressure could occur if the company’s profitability and/or risk-adjusted capitalization were to significantly deteriorate due to adverse operating performance.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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