HONG KONG, June 8 (Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Wing Lung Insurance Company Limited (WLI) (Hong Kong). The outlook of these Credit Ratings (ratings) is stable.
 
The ratings reflect WLI’s solid risk-adjusted capitalization, favorable operating performance and adequate reinsurance protection.
 
WLI’s capital and surplus has continued to grow organically through full retention of positive net income. Favorable underwriting results are attributed to prudent risk selection and disciplined pricing in a soft market environment, especially on key business lines such as employees’ compensation and motor business. The company also maintains a diversified investment portfolio, which has generated stable investment income over the past five years.
 
Offsetting rating factors include the investment risk associated with non-rated bonds, which adds potential volatility to WLI’s investment earnings, and the competitive operating environment in Hong Kong’s non-life market.
 
Positive rating actions could occur if WLI demonstrates improvement in enterprise-wide risk management while maintaining solid risk-adjusted capitalization and stable operating performance. Negative rating actions could occur if the company’s risk-adjusted capitalization deteriorates significantly due to adverse operating performance.
 
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
 
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
 
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best
Christie Lee, +852 2827 3413
Director, Analytics
christie.lee@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
Director, Public Relations
james.peavy@ambest.com

Source: A.M. Best
 
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http://www.businesswire.com/news/home/20170607006112/en
 
--BERNAMA