SINGAPORE, Sept 28 (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 Lonpac Insurance Bhd (Lonpac) (Malaysia). The outlook of these Credit Ratings (ratings) is positive.
 
The rating affirmations reflect Lonpac’s strong risk-adjusted capitalization and very strong track record of operating performance. The company’s risk-adjusted capitalization is supported by a consistent and strong internal capital generation ability that has kept its underwriting leverage low. Lonpac generates one of the highest underwriting margins in Malaysia’s non-life market, and its performance has been very strong compared with its peers based on variety of measures.
 
An offsetting rating factor is the transition to a liberalized market environment. To maintain its very good profitability, Lonpac will need to develop and maintain strong pricing capabilities relative to the large international players that it competes against.
 
Positive rating actions could occur if Lonpac is able to maintain its profitability as a phased liberalization of tariffs occurs. Downward rating actions could arise from weakening in profitability.
 
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
Faith Tan, +65 6589 8400, ext. 212
Financial Analyst
faith.tan@ambest.com
or
Chi-Yeung Lok, +65 6589 8400, ext. 211
Associate Director
chi-yeung.lok@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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--BERNAMA