A.M. Best Affirms Ratings of Wing Lung Insurance Company Limited

HONG KONG--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Wing Lung Insurance Company Limited (WLI) (Hong Kong). The outlook for both ratings is stable.

The ratings reflect WLI’s solid risk-adjusted capitalization, profitable operating results and stable market presence in Hong Kong’s general insurance market.

WLI has recorded consistent growth in its capital and surplus in the past five years, supported by its continuous operating profits. WLI’s risk-adjusted capitalization level, as measured by Best’s Capital Adequacy Ratio (BCAR), is also supportive of the company’s anticipated business growth. WLI’s operating performance has been improving over the past five years, with consistently positive underwriting and investment results since 2010.

Partially offsetting these positive factors is the competitive landscape in Hong Kong’s general insurance market, particularly for employees’ compensation, the largest segment in WLI’s underwriting portfolio. Pricing pressure will pose a challenge to WLI’s underwriting profitability in the coming years.

Future positive rating actions could occur if WLI can continue strengthening its capital position while maintaining the favorable trend in its operating performance. Conversely, negative rating pressure could occur if there is a material decline in the company’s capitalization level, resulting from a significant deterioration of its operating results.

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:

• Catastrophe Analysis in A.M. Best Ratings
• Equity Credit for Hybrid Securities
• Evaluating Non-Insurance Ultimate Parents
• Risk Management and the Rating Process for Insurance Companies
• 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150610006184/en/

A.M. Best Company
Yanwei You, +852-2827-3421
Financial Analyst
[email protected]
or
Jeff Yeung, +852-2827-3413
Associate Director
[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

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