HONG KONG, March 21 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the financial strength of A (Excellent) and the issuer credit rating of “a+” of Fubon Insurance Co., Ltd. (Fubon) (Taiwan). The outlook for both ratings is stable.
 
The rating affirmation reflects Fubon’s strong risk-adjusted capitalization, proven track record of favorable operating performance and its consistent leading position in the non-life insurance market in Taiwan. The ratings also consider the benefits Fubon receives in the areas of distribution, financial flexibility and investment management support as the wholly owned subsidiary of Fubon Financial Holding Co., Ltd., one of the largest financial holdings in Taiwan and is listed on the Taiwan Stock Exchange.
 
Partially offsetting these positive rating factors include its relatively high exposure in real estate investment and underwriting volatility arising from catastrophe-related losses. The company implements a prudent risk management strategy to mitigate risks in the areas of underwriting, credit, investment, and event losses with pre-determined tolerance level. Reinsurance protection is utilized to protect the company’s balance sheet from being negatively impacted by high-loss events.
 
Fubon is well-positioned at the current rating level. Negative rating actions could occur if the company demonstrates significant and continued deterioration in operating performance or if there are material capital and/or dividend payouts that lead to a substantial decline in its risk-adjusted capitalization.
 
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.
 
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Contacts
A.M. Best
Vivian Cheung
Senior Financial Analyst
+852 2827 3421
vivian.cheung@ambest.com
or
Moungmo Lee
Managing Director, Analytics
+65 6589 8412
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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--BERNAMA