A.M. Best Affirms Credit Ratings of China Reinsurance (Group) Corporation and Its Subsidiaries
The ratings reflect China Re’s balance sheet strength, which
The ratings also recognize China Re as the sole state-owned reinsurance group in
As a publicly listed company, China Re has favorable financial flexibility from the equity market and debt market. The group issued two senior notes, totaling
China Re maintains a solid leading position in the domestic reinsurance market, which is not expected to be challenged in the medium term, although there are new market entries. The group’s international footprint is expanding gradually but remains limited; however, this is without considering consolidating the book of business from
The group has a track record of profitable operating results, mainly attributed to favorable investment income from fixed income investments. Underwriting profit remains challenging for direct and reinsurance property and casualty markets due to motor liberalization and intense market competition. The company is subject to policy risk from C-ROSS phase 2 implementation, which increases uncertainties on the reinsurance demands in the upcoming years.
China Re’s risk management capabilities are considered appropriate for its risk profile. Over the years, the companies have improved its pricing and modelling capabilities for underwriting and capital management. In addition, tools and systems enhancement was the focus in recent years to improve risk management efficiency.
Positive rating actions could occur if China Re’s global footprint significantly expands through successfully integrating with
Negative rating actions could occur if China Re’s consolidated risk-adjusted capitalization decreases significantly or its leverage ratio increases significantly. Negative rating actions also could occur if there is ongoing deterioration in its operating performance.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181130005372/en/
Financial Analyst
+852 2827 3426
[email protected]
Director, Analytics
+852 2827 3413
[email protected]
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]
Source:
Agricultural Insurance Market by Key Players: PICC, Zurich (RCIS), Chubb, QBE, China United Property Insurance, American Financial Group
Washington National Offers New Hospital Indemnity Plan
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News