A.M. Best Affirms Credit Ratings of KB Insurance Co., Ltd.
The ratings reflect KB Insurance’s balance sheet strength, which
KB Insurance’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is at the very strong level. The company has a conservative investment portfolio and growing capital and surplus, having benefited from improved profitability and a relatively low dividend payout ratio. Asset leverage has declined over the past five years but remains high, exposing the company’s capital and surplus to asset valuation change.
KBI’s operating performance has improved over the past five years albeit with moderate volatility. The improvement was driven mainly by increasing net investment income. The company’s combined ratio, which had underperformed its major peers historically, has caught up over the past three years. However, the company’s overall operating performance still trails its major peers.
KBI is the fourth-largest non-life insurer in
Positive rating action is unlikely in the near term. Negative rating actions could occur if there is a material deterioration in the company’s risk-adjusted capitalization. Negative rating actions could occur if there is a significant decline in the parent company’s financial strength and credit profile.
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
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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