A.M. Best Revises Outlooks to Negative for Hyundai Marine & Fire Insurance Co., Ltd.

HONG KONG--(BUSINESS WIRE)-- A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Hyundai Marine & Fire Insurance Co., Ltd. (HMF) (South Korea).

The revised rating outlook reflects HMF’s increased asset leverage over the past five years, leaving the company’s capitalization more susceptible to asset value fluctuation. This is also reflected by lower risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and relatively higher level of underwriting leverage when compared with its peer group.

The ratings reflect HMF’s well-established market presence as the second-largest non-life insurer in South Korea by direct premiums written and its conservative investment portfolio.

Positive rating actions could occur if HMF can achieve sustainable improvement in its risk-adjusted capitalization while continuing to strengthen its profitability. Negative rating actions could occur if the company’s risk-adjusted capitalization deteriorates substantially or if there is a sustained deterioration in profitability.

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

Seewon Oh, +852-2827-3404

Associate Director, Analytics

seewon.oh@ambest.com

Christopher Sharkey, +1-908-439-2200 ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

Moungmo Lee, +65-6589-8412

Managing Director, Analytics

moungmo.lee@ambest.com

Jim Peavy, +1-908-439-2200 ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best