TAIWAN'S NAN SHAN GENERAL RATED EXCELLENT - AM BEST

KUALA LUMPUR, March 29 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Taiwan’s Nan Shan General Insurance Co Ltd (Nan Shan General).

The outlook of these credit ratings (ratings) is stable, reflecting Nan Shan General’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Nan Shan General’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, has significantly improved and is assessed as being at the very strong level as of year-end 2023, according to the credit rating agency in a statement.

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The result is underpinned by the capital contribution of NT$1.5 billion in cash in 2023, from the company’s immediate parent, Nan Shan Life Insurance Co Ltd (Nan Shan Life), to restore Nan Shan General’s capital strength, following the large claims arising from pandemic insurance since 2022. (NT$100 = RM14.78)

Nan Shan General reported positive operating results last year, partially supported by the release of reserves provisions for pandemic insurance claims and positive investment performance, while its return on equity has been restored to a high single-digit level.

Having achieved double-digit growth on gross premiums written in 2023, mainly driven by expansions in voluntary motor, travel insurance and commercial lines, Nan Shan General has increased premium retention in the major voluntary motor line since 2023, which continues to be a major driver of the overall underwriting results.

With its bond portfolio continuing to contribute stable streams of interest income, which helped to partially offset volatility in equity investments during 2023, AM Best expects Nan Shan General to continue to focus on domestic fixed-income securities and maintain moderate exposure to equity securities with an aim to boost overall investment returns.

A wholly owned subsidiary of Nan Shan Life, the third-largest life insurance company in Taiwan in terms of total assets, Nan Shan General benefits from parental support in terms of the shared brand recognition, strong distribution support and operating and capital commitments.

-- BERNAMA