KUALA LUMPUR, Sept 24 (Bernama) -- A.M. Best has affirmed the financial strength rating of A+ (superior) and long-term issuer credit rating of ‘aa-’ for South Korea-based Construction Guarantee Cooperative (CG).
The outlook of these ratings, according to the global rating agency and information provider with a unique focus on the insurance industry, is stable.
The ratings reflect CG’s balance sheet strength as well as its strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).
According to a statement, CG’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR). Its robust capitalisation is supported by a large capital base and low underwriting leverage.
CG has maintained a highly-profitable operating performance over the past five years.
Investment income, which mostly consists of interest income, brings a stable profit stream to the company while underwriting performance remains volatile because of the nature of the surety business.
CG is a cooperative organisation specialising in writing surety bonds for its members which are general construction companies in South Korea.
As a government-designated provider of surety bonds for general construction companies, CG has maintained a dominant market share in South Korea over the long term.
The company is under the supervision and control of South Korea’s Ministry of Land, Infrastructure and Transport, and executes government policies that support the construction industry.
For more information, visit www.ambest.com
-- BERNAMA
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