A.M. Best Places Ratings of Hyundai Insurance (China) Co., Ltd. Under Review With Negative Implications

HONG KONG--(BUSINESS WIRE)-- A.M. Best has placed under review with negative implications the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Hyundai Insurance (China) Co., Ltd. (HIC) (China).

The under review status reflects the material increases in HIC’s credit and liquidity risks due to losses caused by the explosions at Tianjin port on Aug. 14, 2015. According to various media sources, Hyundai Motor Company (Hyundai Motor), Korea’s major car maker, had about 4,000 Hyundai and KIA vehicles at Tianjin port. Although the loss survey is on-going, A.M. Best expects HIC to have a sizeable gross loss from the explosions given the fact it has underwritten all property risks related to Hyundai Motor. A.M. Best expects this exposure to lead to a significant increase in credit risk related to reinsurance recoveries as well as overall liquidity risk. The ratings will remain under review pending further discussions between A.M. Best and HIC’s management regarding measures to restore the company’s risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication, and 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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Source: A.M. Best