HONG KONG--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Wing Lung Insurance Company Limited (WLI) (Hong Kong). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect WLI’s solid risk-adjusted capitalization, favorable operating performance and adequate reinsurance protection.
WLI’s capital and surplus has continued to grow organically through full retention of positive net income. Favorable underwriting results are attributed to prudent risk selection and disciplined pricing in a soft market environment, especially on key business lines such as employees’ compensation and motor business. The company also maintains a diversified investment portfolio, which has generated stable investment income over the past five years.
Offsetting rating factors include the investment risk associated with non-rated bonds, which adds potential volatility to WLI’s investment earnings, and the competitive operating environment in Hong Kong’s non-life market.
Positive rating actions could occur if WLI demonstrates improvement in enterprise-wide risk management while maintaining solid risk-adjusted capitalization and stable operating performance. Negative rating actions could occur if the company’s risk-adjusted capitalization deteriorates significantly due to adverse operating performance.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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