The ratings reflect CTIM’s strong risk-adjusted capitalization, consistently favorable operating performance and position as the leader in Macau’s non-life insurance market.

CTIM’s risk-adjusted capitalization level, as reflected by Best’s Capital Adequacy Ratio (BCAR), remains strong and supportive of its ratings. Capital and surplus was strengthened primarily through retention of operating profits, which have been consistently strong due to favorable underwriting performance and profitable investment results. CTIM maintains a leading market position in its core lines of business through diversified distribution channels including direct, brokers and agents, and financial institutions.

Offsetting rating factors include potential volatility of the company’s investment results due to market value fluctuations in fixed income securities and the expected slowdown in the market’s premium growth.

Positive rating actions are unlikely in the near term. Negative rating actions could occur if CTIM’s risk-adjusted capitalization weakens due to, for example, a larger-than-expected dividend payout, or if the company’s operating results deteriorate materially due to investment impairments or other negative factors.

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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

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