SINGAPORE--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of China Taiping Insurance (Singapore) Pte. Ltd. (CTIS) (Singapore). The outlook for each rating remains stable. CTIS is a wholly owned subsidiary of China Taiping Insurance Holdings Company Limited.
The ratings reflect CTIS’ adequate risk-adjusted capitalization, good operating performance and the operational and reinsurance support from the group.
CTIS’ operating performance has been good with contributions from underwriting and investment profit. Favorable investment returns have helped maintain CTIS’ operating performance slightly above the Singapore insurance market. While CTIS remains a small participant in Singapore’s overall non-life market, it remains one of the leading providers in the profitable bond segment.
These strengths are partially offset by a diminishing combined ratio advantage over its peers and negative underwriting results reported from the work injury compensation portfolio. Additionally, CTIS’ exposure to the construction industry could leave results susceptible to downturns within that sector.
While positive rating actions are not likely, negative rating actions may result from a significant deterioration of the company’s operating results or risk-adjusted capitalization from expansion initiatives.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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