AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a+' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable. These companies collectively are referred to as Orient or the group.
The ratings reflect Orient's balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management.
Orient's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The group's balance sheet strength is supported by its prudent reserving practices and strong liquidity position. The majority of capital consumption arises from the group's investment portfolio, which includes a material strategic equity holding that accounted for approximately 17% of total invested assets at year-end 2021. The investment continues to create some volatility in Orient's capital and surplus, owing to fair value movements. However, Orient's capital buffers to date have been sufficient to absorb these fluctuations. In 2021, Orient continued to diversify its investment portfolio by asset class with a further increase in fixed-income securities.
The group has a track record of consistently outperforming its peers in terms of underwriting and overall profitability, which has been largely free of material fluctuations despite severe competition in the
Orient's solid business profile in the
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