A.M. Best Affirms Ratings of United Overseas Insurance Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A+ (Superior) and the issuer credit rating of “aa-” of United Overseas Insurance Limited (UOI) (Singapore). The outlook for both ratings is stable.

UOI’s rating primarily reflects the company’s excellent risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio, excellent operating performance and business profile as a member of the United Overseas Bank Limited (UOB) group.

UOI continues to maintain a favorable solvency margin supported by underwriting and investment profits. Prudent underwriting that focuses on loss control forms the basis for its strong gross and net level results, as well as underwriting results, and helps to sustain reinsurance commission income.

UOI is able to access defensible and profitable segments of the market via its direct bancassurance distribution channel by leveraging UOB’s extensive client network. This competitive advantage in the personal and small and medium-sized enterprise business segments has allowed UOI’s underwriting results to consistently outperform the Singapore general insurance market. Additionally, UOI continues to receive support from UOB in terms of investments and risk management.

Offsetting factors include potential volatility in UOI’s investment return from an investment portfolio that is weighted toward equities and catastrophe risk exposure from its inward reinsurance treaties. Nonetheless, the company’s excellent level of risk-adjusted capitalization and reinsurance protection is expected to provide an adequate buffer against losses arising from these pressures.

UOI is well-positioned at its current rating level. Negative rating actions may arise from a significant deterioration of the company’s operating results or risk-adjusted capitalization from investment losses.

The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Evaluating Non-Insurance Ultimate Parents
• Rating Members of Insurance Groups
• Understanding Universal BCAR

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Faith Tan, +(65) 6589 8400, ext. 212
Associate Financial Analyst
[email protected]
or
Chi Yeung Lok, +(65) 6589 8400, ext. 211
Senior Financial Analyst
[email protected]
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company, Inc.

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