A.M. Best Affirms Credit Ratings of Shinkong Insurance Company Limited

HONG KONG--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” 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 A.M. Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

The company’s risk-adjusted capitalization remains solid and supportive of its current ratings, underpinned by continued organic growth from earnings retention, accumulation of claims equalization reserves and prudent reinsurance arrangements. Shinkong Insurance has consistently demonstrated underwriting and investment profitability over the past five years, mainly driven by positive results in the voluntary personal motor line, investment gains from interest income and realized gains from available-for-sale securities. Moreover, the company maintains a well-established business profile in Taiwan’s non-life insurance segment and consistently has held the third-largest market share over the past 10 years in terms of gross premiums written.

Partially offsetting rating factors include the continued highly competitive market environment, which could exert pressure on the company’s operating profitability.

While positive rating actions are not likely in the short term, negative rating actions could occur if the company experiences significant and continued deterioration in operating performance or if there is a substantial decline in its 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.

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A.M. Best

James Chan, +852 2827 3418

Senior Financial Analyst

james.chan@ambest.com

or

Christie Lee, +852 2827 3413

Director, Analytics

christie.lee@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 Rating Services, Inc.