A.M. Best Upgrades Credit Ratings of Lonpac Insurance Bhd
SINGAPORE--(BUSINESS WIRE)--Sep 26, 2018--A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Lonpac Insurance Bhd (Lonpac) (Malaysia). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Lonpac’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.
The rating upgrades reflect Lonpac’s consistent capital growth, underpinned by strong operating results that compare favorably against peers.
The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by good internal capital generation and low underwriting leverage. Lonpac’s operating performance has been consistently strong, driven by solid underwriting profits and stable investment returns. The company’s operating performance has exhibited a relatively low level of volatility.
Offsetting rating factors include phased liberalization of Malaysia’s fire and motor lines, which could erode underwriting margins in Lonpac’s key fire business line. Currently, the fire business segment is largely tariff driven with limited flexibility for price adjustments.
Positive rating actions are unlikely in the near term. Negative rating actions could result from 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.
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 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: A.M. Best
Faith Tan, +65 6303 5017
Chi Yeung Lok, +65 6303 5018
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
KEYWORD: EUROPE ASIA PACIFIC SINGAPORE
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 09/26/2018 08:39 AM/DISC: 09/26/2018 08:39 AM