SINGAPORE--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Bangkok Insurance Public Company Limited (BKI) (Thailand). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect BKI’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
BKI’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by its low net and gross underwriting leverage, which compares favorably with its peers.
BKI has a track record of generating underwriting margins that are better than the market average. The company has maintained good operating performance despite intense competition and low premium growth. A.M. Best expects that BKI will continue to focus on risk segmentation and prudent reinsurance arrangements to safeguard its underwriting profitability. While BKI is one of the market leaders in the fire, industry all-risk and engineer segments, it ranks seventh in Thailand’s motor segment, which is the country’s largest non-life line of business.
An offsetting rating factor is BKI’s significant investment concentration in a small number of listed equities, which comprised more than half of its invested portfolio and represented approximately 85% of BKI’s capital and surplus as of Dec. 31, 2017. As a result, the company’s capitalization level could be impacted
materially by adverse equity market conditions in general or by company specific factors.
BKI is well-positioned at its current rating level. Negative rating pressure could result from material deterioration in its 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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