HONG KONG, July 15
(Bernama-BUSINESS WIRE) -- A.M. Best has affirmed the financial strength rating of A
(Excellent) and the issuer credit rating of “a+” of Dongbu
Insurance Co., Ltd. (Dongbu)
(South Korea). The outlook for each rating remains stable.
The rating affirmations reflect Dongbu’s very strong risk-adjusted capitalization, favorable operating performance and sound market profile. Dongbu’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at a very strong level and supportive of the current ratings. Although profitability has remained stagnant in recent years primarily due to the deterioration in medical indemnity and auto insurance lines, the company’s five-year results outperformed the industry in several key financial measures as evidenced by the profitable level of its operating ratio. Profitability was mainly supported by strong net investment income and an efficient cost structure. Moreover, Dongbu continued to gradually increase its domestic market share across all three major product lines of auto, commercial and long-term insurance during the period.
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