HONG KONG, March 17 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the financial strength of A (Excellent) and the issuer credit rating of “a” of China Taiping Insurance (Macau) Co., Ltd. (CTIM) (Macau). The outlook for both ratings is stable.
 
The rating affirmations reflect CTIM’s strong operating performance and favorable business profile in the Macau non-life market, as well as strong risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). CTIM has demonstrated a strong and consistent track record of profitable underwriting and investment results. Furthermore, CTIM has demonstrated a more stable trend in net loss ratio compared with its local peers, which reflects the company’s diversified product lines, profitable business growth strategy and its claims management capability. In the medium term, CTIM’s premium generation will continue to be supported by its favorable business profile, including a balanced distribution across banks, agents, brokers and direct channels, increased diversification to personal insurance business and business relationships with mainland China enterprises established at the Taiping Group level.
 
Partially offsetting rating factors include the potential volatility on its overall operating results due to market value movements in the company’s corporate bonds and mutual funds investments.
 
Positive rating actions are unlikely in the short term. Negative rating pressure may arise if CTIM’s risk-adjusted capitalization (for example, a larger than expected dividend payout) or operating results were to materially deteriorate (for example, due to a major investment loss).
 
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 Rating Services, Inc. and/or its subsidiaries.
 
ALL RIGHTS RESERVED.
 
Contacts
A.M. Best
Ken Chow, +852-2827-3426
Senior Financial Analyst
ken.chow@ambest.com
or
Moungmo Lee, +65-6589-8412
Managing Director, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best
 
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http://www.businesswire.com/news/home/20160316005811/en
 
--BERNAMA