HONG KONG--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of KB Insurance Co., Ltd. (KB Insurance) (South Korea). The outlook for both ratings is stable.
The rating affirmations reflect KB Insurance’s adequate risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Although the company’s risk-adjusted capitalization declined in recent two years, it remains adequate to support the current ratings. More recently, KB Insurance disposed its treasury shares to KB Financial Group Inc., which led to the increase in capital and surplus of KB Insurance.
Partially offsetting factors include increasing competition in the domestic market and volatile operating results. Indeed, the company experienced material deterioration in underwriting results from its branch operation in the United States over the past two years.
KB Insurance is well-positioned at its current rating level. Downward rating actions could occur if there is a material deterioration in the company’s risk-adjusted capitalization due to significant losses from underwriting results or its investment portfolio.
Ratings are communicated to rated entities prior to publication, and 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 visit A.M. Best’s Ratings & Criteria Center.
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