Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Business

A.M. Best Assigns Ratings to China Taiping Insurance (UK) Company Limited


Print article Print article
© Business Wire 2014
2014-02-27 17:26:01 -

A.M. Best Europe – Rating Services Limited has assigned a financial strength rating of B++ (Good) and an issuer credit rating of “bbb” to China Taiping Insurance (UK) Company Limited (CTIUK) (UK). The outlook assigned to both ratings is stable.

The ratings reflect CTIUK’s improving operating performance and good risk-adjusted capitalisation. The ratings also take into account the company's niche business profile and strong links with its ultimate parent, state-owned China Taiping Insurance Group Ltd. (China Taiping) (China).

CTIUK is a niche insurer catering predominantly to the needs of the Chinese communities established in the United Kingdom and a select number of other European countries. The company mainly operates in the retail market, targeting restaurants, takeaway outlets and shops.

However, it has

been diversifying its business profile by writing more commercial combined policies in 2013. In addition to this, CTIUK’s recent acquisition of several new broker partners should bolster premium growth in 2014. While CTIUK only accounts for a small proportion of China Taiping’s consolidated revenue, it benefits from the group’s brand recognition as well as investment and reinsurance support.

Despite CTIUK’s volatile earnings in the past, its profit before tax has improved in the last couple of years. This was driven by a more stable underwriting performance following the cancellation of loss-making professional indemnity business and recovering investment results. Going forward, the company is targeting a profit in the range of GBP 1.5-2 million per year, but profit margins are expected to remain constrained by high acquisition expenses.

CTIUK’s risk-adjusted capitalisation has been improving in recent years as a result of lower exposure to equity investments, relatively stable net written premium and increasing retained earnings. Going forward, the balance sheet strength is expected to remain supportive of the current ratings, despite the strong premium growth anticipated in 2014.

Positive rating actions could occur for CTIUK if, over the next few years, it consistently improves its underwriting results while maintaining adequate risk-adjusted capitalisation. Negative rating actions could occur as a result of excessive growth leading to a significant deterioration of earnings or risk-adjusted capitalisation.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.

Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .


In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M.

Best Europe - Rating Services Limited Supplementary Disclosure : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .


A.M. Best Europe – Rating Services Limited is a subsidiary of A.M.

Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

" title="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20140227006089r1&sid=16929&distro=ftp\"/>" target="_blank" rel="nofollow">cts.businesswire.com/ct/CT?id=bwnews&sty=20140227006089r1&am ..

A.M. Best Company, Inc.Charlotte Vigier, +(44) 20 7397 0270Senior

Financial Analyst charlotte.vigier@ambest.com : mailto:charlotte.vigier@ambest.com orCarlos

Wong-Fupuy, +(44) 20 7397 0287Senior Director carlos.wong-fupuy@ambest.com : mailto:carlos.wong-fupuy@ambest.com orRachelle
Morrow, +(1) 908-439-2200, ext. 5378Senior Manager, Public
Relations rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com orJim

Peavy, +(1) 908-439-2200, ext. 5644Assistant Vice President,
Public Relations james.peavy@ambest.com : mailto:james.peavy@ambest.com


Author:
Hossam Abdel-Kader
e-mail
Web: www.pr-inside.com/
Phone: +43 1 9582319

Disclaimer: (c) 2014 Business Wire. All of the news releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com | BidVertiser