S&P Raises Asia Ins. Outlook

September 16, 2005

Standard & Poor’s Ratings Services announced from its Hong Kong office that it has revised its outlook on Asia Insurance Co. Ltd. to stable from negative, and affirmed has its “A-” corporate credit rating.

Standard & Poor’s Ratings Services announced from its Hong Kong office that it has revised its outlook on Asia Insurance Co. Ltd. to stable from negative, and affirmed has its “A-” corporate credit rating.

“The change in outlook reflects our view that the company’s risk appetite has moderated following management’s plan to tighten underwriting control along with reducing its exposure to risky assets,” said S&P. “It also reflects the rating agency’s “view that its credit profile will remain strong, supported by its strong capitalization.”

S&P noted, however that Asia Insurance’s “operating performance will be subject to some pressure in the face of the high concentration of employees’ compensation business in its business mix, and its significant exposure to equity investment; however, the risks will gradually reduce following management’s plan to reduce both its exposure to employees’ compensation and risky assets over medium term. The company’s premium growth is expected to slow, partly as a result of tightening risk selection in a softening market.”

Was this article valuable?

Here are more articles you may enjoy.