SINGAPORE--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” of United Overseas Insurance Limited (UOI) (Singapore). The outlook of these Credit Ratings (ratings) is stable. UOI is a subsidiary of United Overseas Bank Limited (UOB).
The ratings reflect UOI’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management.
UOI continues to perform well, helped by its access to profitable and defensible market segments through its affiliated bancassurance channel. Expenses have been kept low as a result of a steady stream of commission income, which is testament to UOI’s profitable book of business and conservative management philosophy.
Offsetting rating factors include soft market conditions and competitive pressures, which could result in negative pressure on operating performance and profitable growth in its domestic market. A.M. Best expects UOI to approach regional growth cautiously and remain focused on opportunities within the UOB group.
Positive rating actions are unlikely in the near term. Negative rating actions may occur if there is deterioration in UOI’s operating performance or risk-adjusted capitalization.
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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