AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable. CTPIS is a wholly owned subsidiary of
The ratings reflect CTPIS' balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). In addition, CTPIS benefits from rating enhancement to reflect its ownership by the TPG group.
CTPIS' balance sheet strength assessment is underpinned by risk-adjusted capitalisation that AM Best expects to remain at the strongest level over the medium term, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects planned capital injections and ongoing financial commitment from the TPG group to support CTPIS' capital adequacy as it continues to establish its life insurance operations over the medium term. A partially offsetting balance sheet strength factor is the company's modest absolute capital base, which increases the sensitivity of risk-adjusted capitalisation to growth beyond expectation or weaker than expected technical performance.
AM Best views the company's operating performance as adequate with its non-life operations having generated robust underwriting profits over the past five years. Despite a deterioration in the non-life combined ratios for 2018 and 2019, technical performance has improved in 2020 with a lower loss ratio. The company's pre-tax operating income has also been impacted by elevated start-up costs and technical provisions associated with CTPIS initiating life insurance sales in
AM Best views CTPIS' business profile as neutral. The company is a medium size insurer in
AM Best considers CTPIS' ERM approach to be appropriate given the size and complexity of its current operations. The company's ERM framework and capabilities have benefited over a number of years from technical support and guidance provided by the TPG group. Nonetheless, AM Best views CTPIS' developing life operations as presenting heightened execution risk over the medium term.
Despite CTPIS' operations accounting for a relatively small portion of the TPG group's revenues and earnings, it is considered important to the group in terms of accessing the
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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