HONG KONG--(BUSINESS WIRE)--A.M. Best has placed under review with developing implications the financial strength rating of B++ (Good) and the issuer credit rating of “bbb” of Hanwha General Insurance Company Limited (Hanwha General) (South Korea).
The rating action follows Hanwha Life Insurance Co., Ltd.’s (Hanwha Life) public announcement on June 3, 2016, that it will acquire 17.93% of the outstanding shares of Hanwha General that are currently owned by the affiliates of Hanwha Corporation. Hanwha Life currently owns 34.29% of Hanwha General’s shares. As a result of the transaction, Hanwha Life will hold 52.22% of Hanwha General’s shares. The under review status reflects A.M. Best’s uncertainty surrounding Hanwha Life’s credit profile and the future business plans and strategic role that Hanwha General will play in the insurance group structure.
A.M. Best anticipates that Hanwha General’s ratings will be removed from under review following the completion of A.M. Best’s discussions with the company’s management team. Any actual or anticipated changes to Hanwha General’s financial profile will be reviewed to assess the impact on the company’s ratings. Additionally, A.M. Best will factor its view of Hanwha Life’s credit profile into the final rating determination.
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