AM Best has maintained the under review with developing implications status for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' of Hyundai Insurance (China) Co., Ltd. (HIC) (China).
The Credit Ratings (ratings) reflect HIC's balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
These ratings were placed under review with developing implications on 30 July 2019, following an announcement that HIC planned to raise additional capital through four new investors. On 10 March 2020, HIC obtained regulatory approval to receive capital injections from four new investors, namely Legend Holdings Corporation (Legend Holdings); Dirun (Tianjin) Technology Co., Ltd. (Dirun); Anhui Easy-Biz Digital Technology Co., Ltd.; and Ningbo Meishan Bonded Port Area Sequoia Yaosheng Equity Investment Partnership. Following the capital injections, HIC's paid-in capital increased to RMB 1.7 billion (USD 240 million) from RMB 550 million (USD 79 million). Hyundai Marine & Fire Insurance Co., Ltd.'s stake in HIC has been diluted to 33% from 100%, while Legend Holdings and Dirun each hold a 32% stake.
As the new board of directors appointment has been delayed by COVID-19, HIC's ratings will remain under review until AM Best concludes its discussions with the company's shareholders and new management team. The extended under review status reflects the uncertainty over HIC's credit profile and how future business plans could impact HIC.
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 media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
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