A.M. Best Affirms Ratings of Lonpac Insurance Bhd

SINGAPORE--()--A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Lonpac Insurance Bhd (Lonpac) (Malaysia). The outlook on both ratings is stable.

The ratings acknowledge Lonpac’s excellent operating performance and strong business profile. Risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio has strengthened on the back of lower underwriting leverage.

Lonpac’s affiliation with Public Bank Berhad and ability to defend its distribution channels has enabled the company to access profitable segments of the market. This has underpinned Lonpac’s market position in a competitive landscape driven by market consolidation.

Offsetting rating factors include the expected liberalization of Malaysia’s fire line, which is the main contributor to Lonpac’s underwriting profits. Positive rating actions could occur if Lonpac is able to achieve its current business plan as Malaysia’s fire line is liberalized. Downward rating action could arise from a trend of material deterioration in profitability.

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.

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

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Faith Tan, +(65) 6589 8400, ext. 212
Associate Financial Analyst
faith.tan@ambest.com
or
Chi Yeung Lok, +(65) 6589 8400, ext. 211
Senior Financial Analyst
chi-yeung.lok@ambest.com
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Faith Tan, +(65) 6589 8400, ext. 212
Associate Financial Analyst
faith.tan@ambest.com
or
Chi Yeung Lok, +(65) 6589 8400, ext. 211
Senior Financial Analyst
chi-yeung.lok@ambest.com
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com