The ratings reflect KP&I’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The ratings also acknowledge the wide range of support that the Club receives from the
KP&I’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and it is expected to remain at that level over the intermediate term. The Club’s balance sheet strength is underpinned by its low underwriting leverage and a highly conservative investment portfolio.
After a net loss of
KP&I has a relatively small presence in the global P&I market in comparison with members of the
KP&I was founded in 2000 under the Ship Owners’ Mutual Protection and Indemnity Association Act as part of the government’s initiative to develop South Korea’s shipping industry. Aside from its strategic role in the long-term development of the country’s marine infrastructure, the Club benefits from various support measures by the
Negative rating actions could occur from a sustained deterioration in operating profitability to a level that no longer demonstrates a positive distinction from its industry peers. Negative rating actions also may arise if support from the South Korean government is reduced to an extent that no longer supports the current level of enhancement.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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