HONG KONG, Feb 18 (Bernama-BUSINESS WIRE) -- A.M. Best has removed from under review with negative implications and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Aioi Nissay Dowa Insurance (China) Company Limited (ADIC) (China). The outlook assigned to both ratings is stable.
 
The ratings of ADIC were placed under review with negative implications following the expectation of the substantial increase in ADIC’s credit and liquidity risks due to losses caused by explosions at the Tianjin port on Aug. 12, 2015.
 
The removal of the ratings from under review with negative implications follows the company’s prompt action to increase capital in order to shore up the losses from the explosions at the Tianjin port and the smooth progress in settling claims.
 
The stable outlook reflects A.M. Best’s expectation that ADIC’s underwriting results will stabilize over the near term and that risk-adjusted capitalization will continue to support its risk profile. ADIC is expected to see gradual improvement in underwriting results by stabilizing its expense ratio with sizeable premium income from auto inward reinsurance premium with a limited exposure to commercial line risks.
 
ADIC is well-positioned at the current rating level. Negative rating actions could arise if there is material deterioration in the company’s risk-adjusted capitalization due to faster-than-forecasted growth or adverse deviation from the forecasted underwriting performance.
 
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
 
This press release relates to rating(s) 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.
 
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
 
Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best Company, Inc.
Seewon Oh
Associate Director, Analytics
+852-2827-3404
seewon.oh@ambest.com
or
Moungmo Lee
Managing Director, Analytics
+65-6589-8421, ext. 210
moungmo.lee@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+(1) 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
james.peavy@ambest.com

Source: A.M. Best
 
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http://www.businesswire.com/news/home/20160217000000/en
 
--BERNAMA