AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb+' of
The ratings reflect
The revised outlooks reflect operating performance metrics that have strengthened in recent years and compare favorably with industry peers and global benchmarks. Underwriting performance has shown good stability over time, supported by robust earnings from profitable commercial and industrial business achieved through an ongoing focus on risk selection and expense control. While other major lines of businesses, including personal accident and motor insurance, have seen high competition leading to elevated loss ratios, the company has undertaken portfolio remediation measures, which included tighter underwriting controls, more refined performance monitoring, nonrenewal of unprofitable accounts and centralisation of claims management processes. In addition, underwriting performance has shown further positive development in the first half of fiscal-year 2020, particularly in motor, health and personal accident lines of business as a result of COVID-19-induced community lockdown and mobility restriction measures. However, risks to the commercial and industrial insurance segments, including premium contractions due to economic uncertainty, remain feasible over the near term. In addition, investment income, which consistently has enhanced overall earnings, may be pressured due to lower interest rates on deposits and limited dividends from equity holdings.
The ratings also reflect the implicit support for various aspects of the business that
AM Best considers the company's ERM approach as appropriate given the size and complexity of its current operations. Going forward, AM Best expects
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