HONG KONG--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Fubon Insurance Co., Ltd. (Fubon) (Taiwan). The outlook of these Credit Ratings (ratings) is stable.
The rating affirmations reflect Fubon’s solid risk-adjusted capitalization, track record of favorable operating performance and its leading position in Taiwan’s non-life insurance market. The company’s prudent reinsurance strategy has effectively protected the company’s balance sheet from being materially impacted by losses arising from the Tainan Earthquake event in February 2016. Fubon also continues to benefit in the areas of distribution, financial flexibility and investment management support as the wholly owned subsidiary of Fubon Financial Holding Co., Ltd.
Partially offsetting these positive rating factors are its relatively high exposure to real estate investment and potential underwriting volatility arising from catastrophe-related losses.
Positive rating actions could occur if Fubon’s operating performance remains strong and its risk-adjusted capitalization strengthens. Negative rating actions could occur if there is significant deterioration in operating performance or if there are material capital or dividend payouts that lead to a substantial decline in its risk-adjusted capitalization. Furthermore, the ratings could be impacted if the parent company’s credit profile deteriorates.
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.
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