A.M. Best Assigns Credit Ratings to LIG Insurance (China) Co Ltd

04-Apr-2018 Intellasia | BusinessWire | 12:55 AM Print This Post

HONG KONG–(BUSINESS WIRE)–A.M. Best has assigned a Financial Strength Rating of A-
(Excellent) and a Long-Term Issuer Credit Rating of “a-” to LIG
Insurance (China) Co Ltd
(LIG China) (China). The outlook assigned
to these Credit Ratings (ratings) is stable.

LIG China is a property/casualty insurer in China, established in 2009.
It is wholly owned by KB Insurance Co., Ltd. (KB Insurance), a
Korea-based company that is a wholly owned subsidiary of KB Financial
Group Inc.
Headquartered in Jiangsu with a branch office in
Guangdong, LIG China focuses on commercial property, liability and
credit lines of business.

The ratings reflect LIG China’s balance sheet strength, which A.M. Best
categorizes as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk
management. The ratings also reflect the implicit support the company
receives from its parent, KB Insurance.

LIG China’s very strong balance sheet strength is supported by
risk-adjusted capitalization being at the strongest level and by very
low underwriting leverage relative to its peers. Overall operating
performance is adequate, underpinned by a stable stream of interest
income that is significant in size compared with its net earned premium.
The company occupies a niche market by focusing on servicing Korean
companies that operate in China; LIG China has a competitive advantage
in this market due to its long-term relationships with those companies.

Offsetting rating factors include a high dependency on reinsurance and a
high management expense ratio due to its small premium base. The
company’s niche market also limits its future business growth.

Positive rating actions could occur if LIG China continues to
demonstrate an improving business profile and favorable and stable
operating results, while maintaining its solid risk-adjusted
capitalization.

Negative rating actions could occur if there is significant
deterioration in the company’s operating performance or if there is a
substantial decline in its risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication.
Unless stated otherwise, the ratings were not amended subsequent to that
communication.

This press release relates to Credit Ratings that have been published
on A.M. Best’s website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best’s
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best’s Credit Ratings
. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view
Guide
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit
www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Christie Lee, +852-2827-3413
Director,
Analytics

[email protected]
or
John
Andre, +1-908-439-2200, ext. 5619

Managing Director,
Analytics

[email protected]
or
Christopher
Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations
[email protected]
or
Jim
Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations
[email protected]

 


Category: BusinessWire, PRAsia

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