A.M. Best Affirms Credit Ratings of Bangkok Insurance Public Company Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Bangkok Insurance Public Company Limited (BKI) (Thailand). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect BKI’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

BKI’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by its low net and gross underwriting leverage, which compares favorably with its peers.

BKI has a track record of generating underwriting margins that are better than the market average. The company has maintained good operating performance despite intense competition and low premium growth. A.M. Best expects that BKI will continue to focus on risk segmentation and prudent reinsurance arrangements to safeguard its underwriting profitability. While BKI is one of the market leaders in the fire, industry all-risk and engineer segments, it ranks seventh in Thailand’s motor segment, which is the country’s largest non-life line of business.

An offsetting rating factor is BKI’s significant investment concentration in a small number of listed equities, which comprised more than half of its invested portfolio and represented approximately 85% of BKI’s capital and surplus as of Dec. 31, 2017. As a result, the company’s capitalization level could be impacted

materially by adverse equity market conditions in general or by company specific factors.

BKI is well-positioned at its current rating level. Negative rating pressure could result from material deterioration in its operating performance or risk-adjusted capitalization.

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 © 2018 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best

Tran Nhat Trung, +65 6303 5019

Financial Analyst

trung.tran@ambest.com

or

Chi-Yeung Lok, +65 6303 5016

Director, Analytics

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