Taiwanese Shinkong Insurance Receives Credit Rating Boost From AM Best
KUALA LUMPUR, April 28 (Bernama) -- AM Best has upgraded the long-term issuer credit rating (Long-Term ICR) of Taiwan’s Shinkong Insurance Company Limited (Shinkong Insurance) to “a+” (Excellent) from “a” (Excellent), while affirming its financial strength rating (FSR) at A (Excellent).
In a statement, AM Best said the outlook of the Long-Term ICR has been revised to stable from positive, with the outlook for the FSR remaining stable.
The credit ratings (ratings) reflect Shinkong Insurance’s very strong balance sheet strength, strong operating performance, neutral business profile and appropriate enterprise risk management.
“The upgrade in Long-Term ICR is driven by the company’s robust profitability, underpinned by strong underwriting gains and steady investment income,” the global credit rating agency said.
Shinkong Insurance recorded solid underwriting profits over the past two years, setting record-high net technical results and achieving the highest net income among domestic non-life insurers in 2024, contributing 16.4 per cent of the segment’s total profits.
AM Best noted that the company has consistently outperformed peers in key metrics, including loss experience, expense ratios and return measures, with a five-year average return on equity of 13.1 per cent and a 2024 return on premium of 20.6 per cent.
Its risk-adjusted capitalisation remains at the strongest level as measured by Best’s Capital Adequacy Ratio, supported by organic earnings growth, a prudent investment approach, comprehensive reinsurance coverage, and financial flexibility as a listed entity.
Shinkong Insurance is Taiwan’s third-largest non-life insurer by gross premiums written, with a moderately diversified underwriting portfolio and a stable distribution mix led by its direct channel.
AM Best cautioned that negative rating actions could occur should there be a significant decline in profitability or a marked deterioration in balance sheet strength. Conversely, further positive rating actions are possible if the company’s balance sheet metrics improve beyond the current very strong level.
-- BERNAMA