Tuesday, 1 March 2016

A.M. Best Affirms Ratings Of Tugu Insurance Company Limited

HONG KONG, Feb 29 (Bernama) -- A.M. Best has affirmed the financial strength of B++ (Good) and the issuer credit rating of "bbb" of Tugu Insurance Company Limited (Tugu) (Hong Kong). The outlook for both ratings is stable.

The rating affirmations reflect Tugu's strong risk-adjusted capitalization, conservative investment portfolio and initiatives undertaken to improve underwriting stability. Tugu's risk-adjusted capitalization, as measured by the Best's Capital Adequacy Ratio (BCAR), remains strong with a relatively low level of net premium leverage and low investment risk profile. The company mainly invests in cash and bonds that provide good liquidity to serve its claims obligations, while its investment portfolio also contributes a stable stream of interest income to net profits. The company has implemented initiatives to reduce underwriting volatility by slowing premium growth in Hong Kong's employee compensation insurance segment and by diversifying its revenue sources toward overseas business.

http://www.bernama.com/bernama/v8/newsindex.php?id=1220184

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