HONG KONG--(BUSINESS WIRE)--A.M. Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Macau Life Insurance Company Limited (MLIC) (Macau). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in the A.M. Best’s interactive rating process.
The ratings reflect MLIC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management.
On June 2, 2016, Dah Sing Financial Holdings Limited and Macau Insurance Company Limited announced that they agreed to sell 100% of MLIC’s shares to Thaihot Investment (Bermuda) Company Limited (Thai Hot) (Bermuda). The acquisition was completed on Nov. 9, 2017. A.M. Best expects MLIC to maintain its current distribution relationship with Banco Comercial de Macau, S.A. after the closing of the transaction, while MLIC’s pension fund management business was excluded from the transaction.
MLIC is well-capitalized to support its risk profile, which is highly concentrated on investment risk. The company is one of the smallest players in Macau’s life insurance market in terms of gross premium written in 2016 and mainly distributes long-term products designed by its affiliate, Dah Sing Life Assurance, which also was acquired by Thai Hot in June 2017.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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