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    11Jun, 2023
    AM Best Revises Outlooks to Negative for Uzbekinvest Export-Import Insurance Company, JSC

    LONDON, April 28, 2023–(BUSINESS WIRE)–AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb” (Fair) of Uzbekinvest Export-Import Insurance Company JSC (Uzbekinvest) (Uzbekistan).

    The Credit Ratings (ratings) reflect Uzbekinvest’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.

    The revision of the outlooks to negative from stable reflects pressure on Uzbekinvest’s balance sheet strength, due to the expected deterioration of the company’s risk-adjusted capitalisation at year-end 2022 (audited financial statements are yet to be finalised). This is due to the company’s significant business growth, combined with its lack of sophisticated accumulation management. The company is taking steps to re-build the buffers within its risk-adjusted capitalisation and to improve its exposure management. However, should the company fail to meet the capital requirements of its growing book of business, a rating downgrade is likely.

    Uzbekinvest’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects the company’s BCAR scores to remain above the minimum required for the strongest assessment, albeit with a lower buffer to absorb potential shock losses. In addition, the company has a conservative investment allocation strategy, with approximately half of its investments held in bonds and other fixed income securities outside of Uzbekistan, which are predominantly of excellent credit quality. Offsetting factors include the company’s relatively unsophisticated capital management capabilities.

    The marginal operating performance assessment considers Uzbekinvest’s high combined ratio, with a five-year (2017-2021) weighted average of 117.9%, as calculated by AM Best. Whilst the non-life loss ratio is low, overall underwriting results are negatively affected

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    1Jun, 2023
    AM Best Affirms Credit Ratings of Shinkong Insurance Company Limited

    HONG KONG, April 28, 2023–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Shinkong Insurance Company Limited (Shinkong Insurance) (Taiwan). The outlook of these Credit Ratings (ratings) is stable.

    The ratings reflect Shinkong Insurance’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

    Shinkong Insurance’s risk-adjusted capitalization remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital and surplus level dropped slightly due to unfavourable losses reported under other comprehensive income and a dividend payout during 2022. The company’s risk-based capital ratio remains at a healthy level and above the regulatory requirement with a good level of buffer. Shinkong Insurance’s investment portfolio has been liquid and stable with the majority of its investment assets held in cash and investment grade bonds. The company’s reinsurance dependency remains moderate and is placed with reinsurer panels of good credit quality. The company has incurred limited claims losses on its pandemic-related insurance policies, despite the pandemic being a capital event for Taiwan’s non-life industry.

    Shinkong Insurance continued to deliver positive underwriting results in 2022, supported by moderate top-line growth and stable operating expenses. The company’s net combined ratio remained stable in 2022, supported by favourable voluntary motor business and limited impact from large losses. The company recorded losses for its equity investments due to fluctuations in the capital markets. The company is expected to continue to invest in fixed-income products and long-term equity investments with stable investment income.

    Shinkong Insurance is the third-largest insurer in Taiwan’s non-life insurance market based on gross premium written. The company’s underwriting portfolio has been moderately diversified with

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