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 Thaire Life Assurance Public Company Limited (Thaire Life) (Thailand). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Thaire Life’s balance sheet strength, which A.M. Best categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Thaire Life’s risk-adjusted capitalization is supported by its moderate underwriting leverage. In terms of operating performance, the company continues to generate good returns through underwriting activities and has consistently maintained a return on equity of more than 20%.
Thaire Life is an established player in Thailand’s life reinsurance market. In addition to reinsurance capacity, the company offers value-added services in areas such as product development, distribution and risk management. These services help Thaire Life strengthen its relationships with cedants.
An offsetting rating factor is the limited demand for reinsurance among direct life insurers. The company serves a market dominated by considerably larger cedants with high premium retentions and low reinsurance needs. In such an environment, limited growth in size and scale relative to cedants could diminish Thaire Life’s profile as a provider of reinsurance protection over time. The company also faces some cedant concentration risk.
Thaire Life is well-positioned at its current rating level. Negative rating pressure could result from a weakening of the company’s business profile or deterioration in operating performance.
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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