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. (KB) (South Korea). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect KB’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has improved year over year, supported by modest underwriting leverage and a conservative investment portfolio.

KB has a track record of volatile results, although the trend has improved in recent years owing to the company’s efforts to improve profitability.

While the company has been South Korea’s fourth-largest non-life insurer for the past five years, its market share has slightly decreased during that period as a result of the selective marketing strategy it put in place to enhance profitability.

The ratings also consider the implicit and explicit support provided by its ultimate parent, KB Financial Group Inc. (KB Group).

KB Insurance is well-positioned at its current rating level. Negative rating actions could occur if there is material deterioration in the company’s risk-adjusted capitalization due to significant losses from underwriting results or its investment portfolio. In addition, negative rating actions could occur if the company’s ultimate parent changes its view of KB’s strategic importance in the group, or if the parent significantly reduces its support.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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 affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Seewon Oh, +852-2827-3404
Associate Director, Analytics
seewon.oh@ambest.com
or
Christie Lee, +852-2827-3413
Director, Analytics
christie.lee@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
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Seewon Oh, +852-2827-3404
Associate Director, Analytics
seewon.oh@ambest.com
or
Christie Lee, +852-2827-3413
Director, Analytics
christie.lee@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
Director, Public Relations
james.peavy@ambest.com