KUALA LUMPUR, April 16 (Bernama) -- A.M. Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit rating of ‘a´ of Sun Hung Kai Properties Insurance Ltd (SHKPI) Hong Kong and the outlook is stable.
SHKPI is a wholly owned subsidiary of Sun Hung Kai Properties Ltd (SHKP), one of the largest and most well-established property development and investment conglomerates in Hong Kong, a statement said.
The ratings reflect SHKPI´s balance sheet strength, which categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
In addition, the insurance company´s underwriting operations have been highly profitable and cash-generative.
However, SHKPI´s investment portfolio shows an appetite to invest in higher-risk assets, which exposes its overall earnings to considerable market and credit risks.
Despite the soft market in Hong Kong in recent years, SHKPI has continued to generate strong and consistent operating profits, supported mainly by the company´s low acquisition cost structure, as well as by a steady stream of interest and dividend income.
SHKPI is a medium-sized non-life insurer in Hong Kong, mainly underwrites employee compensation business that is associated with group-related construction projects.
A.M. Best is the world´s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
--BERNAMA
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