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.
The ratings reflect ZhongAn's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, favourable business profile and appropriate enterprise risk management.
The very strong balance sheet strength assessment is underpinned by ZhongAn's risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). As of year-end 2022, ZhongAn's capital and surplus including minority interest reached
AM Best assesses ZhongAn's operating performance as marginal. After two consecutive years of net profit in 2020 and 2021 following three years of net losses until 2019, ZhongAn reported a net loss of
AM Best views ZhongAn's business profile as favorable. As of 2022, the company maintained 1.6% market share in terms of direct premium written and was ranked ninth in
Positive rating actions could occur if the company demonstrates sustained improvement in operating performance with stablisation of underwriting profit margin and successful business execution of its non-insurance operations, while without being exposed to unfavourable volatility in its investment results. Negative rating actions could occur if there is significant adverse deviation from the company's business plan, or if there is a material decline in its risk-adjusted capitalisation due to faster-than-expected growth in underwriting or asset risks. Negative rating actions may arise if its partnerships with key shareholders weaken such that it no longer supports a favourable business profile assessment.
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 Performance Assessments, 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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