HONG KONG, Aug 8 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Blue Cross (Asia-Pacific) Insurance Limited (Blue Cross) (Hong Kong). The outlook for each rating is stable.
 
The rating affirmations reflect Blue Cross’ strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and favorable business profile as one of the leading insurers in the accident and health insurance market in Hong Kong, in particular the group medical segment. The company continued to improve its diversity in distribution channels and maintained profitable underwriting results in fiscal-year 2015 despite more difficult market conditions.
 
In terms of investment results, Blue Cross has benefited from a stable stream of interest and dividend income over the past five years, which has helped the company partially absorb volatility in underwriting performance and in the market value of equity investments.
 
Partially offsetting rating factors include the competitive operating environment and an inflationary trend in claims, which drove an increase in the combined ratio in 2015. In addition, volatility in the financial market continued to have a flow-on effect on the performance of Blue Cross’ run-off life business and BCAR.
 
Positive rating actions could occur if Blue Cross can demonstrate an improved business profile and enterprise risk management, while consistently maintaining favorable operating performance and very strong risk-adjusted capitalization.
 
Negative rating actions could occur if the company’s risk-adjusted capitalization weakens from its current level or a deteriorating trend in underwriting profitability emerges.
 
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 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. 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, ext. 210
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/20160805005498/en
 
--BERNAMA