The ratings reflect PICC HK’s solid risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which improved in 2016 as the company de-risked its investment portfolio by focusing on investment-grade bonds and blue chip stocks. The ratings also recognize the implicit and explicit support that PICC HK receives from its parent, The People’s
As PICC Group’s sole overseas subsidiary, PICC HK plays a strategic role in the group’s overseas development. The company has generated a stable stream of premiums by writing inward business, which includes facultative and treaty business, as well as whole account quota share from its affiliate,
Offsetting rating factors include the company’s limited presence in Hong Kong’s non-life insurance market and the narrow profit margin on inward business from
Positive rating actions may occur if PICC HK can achieve substantial improvement in its risk-adjusted capitalization and market profile, while maintaining a favorable trend in operating performance. Negative rating actions could occur if PICC HK’s operating results deteriorate significantly, resulting in a material decline in risk-adjusted capitalization. A reduced level of support from the
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 rating(s) 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.
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