A.M. Best Comments on Credit Ratings of Macau Insurance Company Limited, Amid Pending Regulatory Decision on Guaranteeing of Technical Reserves

HONG KONG--()--A.M. Best has commented that the Credit Ratings (ratings) of Macau Insurance Company Limited (Macau Insurance) (Macau) remain unchanged despite a pending decision by the regulator on the amount of technical reserves required to be guaranteed, which involves fronting business from Typhoon Hato-related claims.

A.M. Best expects the required reserves that are guaranteed by assets will be manageable for Macau Insurance, due to its balance sheet strength. The company had a material capital strengthening in 2017 from the proceeds of disposing its subsidiary, Macau Life Insurance Company Limited. A capital injection of MOP 100 million (USD 12.3 million) from its shareholders to support the company’s medium term business development strategy received regulatory approval and was completed in February 2018.

A.M. Best will continue to monitor the Monetary Authority of Macau’s final decision and will further assess the impact on Macau Insurance’s rating fundamentals once that decision is made.

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 © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Christie Lee, +852 2827 3413
Director, Analytics
christie.lee@ambest.com
or
John Andre, +1-908-439-2200, ext. 5619
Managing Director, Analytics
john.andre@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
Christie Lee, +852 2827 3413
Director, Analytics
christie.lee@ambest.com
or
John Andre, +1-908-439-2200, ext. 5619
Managing Director, Analytics
john.andre@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