A.M. Best Affirms Ratings of Dongbu Insurance Co.
The ratings reflect Dongbu’s robust risk-adjusted capitalization, long-term track record of strong operating performance and sound market profile. Dongbu’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), improved in fiscal year 2014 and remained strong and supportive of the current ratings. The improvement was driven by the growth in the company’s capital and surplus, which increased in tandem with the growth in retained earnings.
Dongbu’s market share in the domestic non-life insurance market has grown gradually over the past five years. In order to adapt to the expected low growth phase over the short to medium term, the company continues to put strategic focus on developing and promoting the sale of profitable protection type products.
Partially offsetting these positive factors are the challenging underwriting environment and the continued low interest rate trend. Amid the gradually intensifying market competition and strengthening regulations, Dongbu experienced some negative impact from insufficient pricing, in particular in its medical and auto products. Moreover, the low interest rate environment also created downward pressure on the company’s investment yield.
While Dongbu is well-positioned at its current rating level, negative rating actions could occur if the company’s risk-adjusted capitalization experiences a material deterioration due to adverse operating performance.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) that have been published on
Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150731005708/en/
Financial Analyst
+852-2827-3424
[email protected]
or
Seewon Oh
Associate Director
+852-2827-3404
[email protected]
or
Manager, Public Relations
+(1) 908 439 2200, ext. 5159
[email protected]
or
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
[email protected]
Source:
York/Adams drug commission plans methadone clinic for Hanover-Adams area
U-Save Car & Truck Rental and LeFleur Transporation team up with Habitat for Humanity Mississippi Capital Area on a build in Canton, MS
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News