A.M. Best Assigns Credit Ratings to Zurich Insurance (Taiwan) Ltd.

HONG KONG--()--A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Zurich Insurance (Taiwan) Ltd. (ZIT) (Taiwan). The outlook of these Credit Ratings (ratings) is stable.

On Jan. 17, 2017, Hozan Investment Co., Ltd., a wholly owned subsidiary of Ho Tai Motor Co., Ltd. (Ho Tai Motor), completed its acquisition of ZIT. Accordingly, ZIT is no longer affiliated with Zurich Insurance Group, though it is allowed to use the Zurich brand for an interim period until the formal name change to Hotai Insurance Co., Ltd., which is tentatively scheduled to occur by March 1, 2017. Ho Tai Motor, ZIT’s new ultimate parent, is a Taiwan market-leading distributor of well-known auto brands such as Toyota, Lexus and HINO. Ho Tai Motor also operates and invests in car rental and leasing, auto finance, auto insurance and auto parts businesses.

The ratings reflect ZIT’s sound risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), its prudent underwriting practices and the sustainable competitive advantage in the motor distribution channel derived from being a subsidiary of Ho Tai Motor. A.M. Best anticipates that Ho Tai Motor’s distribution network will allow ZIT to scale up its motor insurance portfolio in the near future.

Offsetting rating factors include a high expense ratio, and the execution risk on the business transformation and strategic integration with ZIT’s new parent.

Positive rating actions could occur if ZIT can implement successfully its business transformation plan and continuously demonstrate stable and favorable operating results. Negative rating actions could occur if ZIT’s risk-adjusted capitalization declines sharply due to a higher-than-expected increase in the company’s risk profile.

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 © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Christie Lee
Director, Analytics
+852 2827 3413
christie.lee@ambest.com
or
Moungmo Lee
Managing Director, Analytics
+65 6589 8412
moungmo.lee@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

A.M. Best
Christie Lee
Director, Analytics
+852 2827 3413
christie.lee@ambest.com
or
Moungmo Lee
Managing Director, Analytics
+65 6589 8412
moungmo.lee@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com