A.M. Best Affirms Credit Ratings of Meritz Fire & Marine Insurance Co., Ltd.
The ratings reflect Meritz’s balance sheet strength, which
Meritz’s strong balance sheet is underpinned by its very strong risk-adjusted capitalization, high degree of liquidity and highly rated reinsurance panel. Meritz’s capital requirements, as measured by Best’s Capital Adequacy Ratio (BCAR), continue to be driven by asset risk due to its sizeable investment assets relative to its shareholder funds. While the company has significant exposure to loans – project financing loans in particular – its investment portfolio is considered to be well-managed in terms of asset/liability matching and diversified in terms of asset class.
Meritz’s profitability has recovered since 2014, demonstrated by improvements in its return on equity and operating ratio. In the first nine months of 2017, the company further boosted profitability and reported an operating ratio below 90%, owing to improved underwriting results and strong investment returns.
Although Meritz is not a market leader in
Positive rating actions could occur if Meritz demonstrates sustained improvement in its profitability while maintaining very strong risk-adjusted capitalization.
Negative rating actions could occur if Meritz's risk-adjusted capitalization declines significantly, or if there is material 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 © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171207006023/en/
Seewon Oh, +852 2827 3404
Associate Director, Analytics
[email protected]
or
Director, Analytics
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
A.M. Best Affirms Credit Ratings of ACR Capital Holdings Pte. Ltd. and Its Associated Companies
A.M. Best Affirms Credit Ratings of NongHyup Property and Casualty Insurance Company Limited
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News