Ratings Roundup: Sun Hung Kai, Zurich

A.M. Best Co. has affirmed the financial strength rating of ‘A-’ (Excellent) and the issuer credit rating (ICR) of “a-” of Sun Hung Kai Properties Insurance Limited (SHKPI) with a stable outlook. “The ratings reflect the company’s consistent positive operating performance, strong liquidity and unique distribution model,” said Best. They also take in to account “SHKPI’s continued surplus growth and low net premium leverage cushion.”

A.M. Best Co. commented that the ratings of Zurich Financial Services and those of its rated subsidiaries remain unchanged following the announcement of post-tax earnings of $5.6 billion at year-end 2007 and the proposal of a CHF 2.2 billion (approximately $ 2.0 billion) share buy-back, as well as a gross dividend of CHF 15.00 per share (amounting to $1.9 billion in total). Best said it “believes that Zurich’s consolidated risk-adjusted capitalization remains supportive of the current ratings despite the proposed share buy-back and the dividend payment. Best also indicated that it “expects Zurich to maintain the current level of risk-adjusted capitalization going forward.”