A.M. Best Affirms Credit Ratings of KB Insurance Co., Ltd.

HONG KONG--()--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of KB Insurance Co., Ltd. (KBI) (South Korea). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect KBI’s adequate risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and improved operating performance.

KBI’s risk-adjusted capitalization remains at an adequate level to support its current ratings. The company reported improved underwriting results that reflected initiatives taken, such as stricter underwriting and premium rate hikes. In the second half of 2016, the company’s U.S. branch was allowed to restart underwriting new businesses without restrictions.

Partially offsetting these positive rating factors are the company’s volatile results reported over the past five years and the low interest rate environment that negatively affects the profitability of KBI’s major line of long-term insurance.

Positive rating actions could occur if there is significant improvement in the company’s risk-adjusted capitalization driven by a sustained improvement in profitability. Conversely, negative rating actions could occur if there is significant deterioration in the company’s operating performance that materially affects its risk-adjusted capitalization.

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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Sergio Agena, +852 2827 3407
Associate Financial Analyst
sergio.agena@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Seewon Oh, +852 2827 3404
Associate Director, Analytics
seewon.oh@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Sergio Agena, +852 2827 3407
Associate Financial Analyst
sergio.agena@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Seewon Oh, +852 2827 3404
Associate Director, Analytics
seewon.oh@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com