AM Best Affirms Credit Ratings of Etiqa General Insurance Berhad
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of
The ratings reflect EGIB’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also factor in a neutral impact from the company’s ultimate majority ownership by Malayan Banking Berhad (Maybank group), one of the largest financial services groups incorporated, listed and domiciled in
EGIB’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year end 2021, as measured by Best’s Capital Adequacy Ratio (BCAR), and is expected to remain at this level over the near to medium term. AM Best views the company as having a moderate-risk investment strategy as it holds a combination of low-risk assets, including cash, deposits and bonds, albeit with notable exposure to higher-risk assets of equities and real estate (together representing approximately 23% of invested assets at year end 2021). In addition, the company has high reinsurance usage and dependence, with a net retention ratio of 33% in 2021. As a result, the company’s reinsurance recoverables are a large balance sheet item, equal to three times its shareholders’ equity at the end of 2021.
EGIB’s operating performance is assessed as strong, with a five-year average combined ratio of approximately 87% (2017-2021). During the year-to-date period ending
The business profile assessment of neutral reflects EGIB’s position as the fifth largest general insurer in
AM Best views EGIB’s ERM approach as appropriate given the current size and complexity of its operations. Risk management capabilities are typically considered appropriate relative to the profile of the company’s key risks, although reinsurance credit/dispute risk is viewed to be elevated given the company’s exposure to some non-rated reinsurance counterparties, including captives.
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 AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in
Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
src="https://cts.businesswire.com/ct/CT?id=bwnewssty=20221208005684r1sid=acqr8distro=nxlang=en" style="width:0;height:0" />
View source version on businesswire.com: https://www.businesswire.com/news/home/20221208005684/en/
Senior Financial Analyst
+65 6303 5025
[email protected]
Director, Analytics
+65 6303 5020
[email protected]
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
[email protected]
Source: AM Best
RT Specialty Senior Executives Address Environmental & Construction-Related Liability & Insurance Trends at 42nd IRMI Construction Risk Conference
CrowdHealth Secures $6M Series A for Community-Powered Alternative to Health Insurance
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News