HONG KONG--(BUSINESS WIRE)--A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of KB Insurance Co., Ltd. (KB Insurance) (South Korea). The outlook assigned to these Credit Ratings (ratings) is stable.
The rating actions follow the conversion of KB Insurance into a wholly owned subsidiary of the KB Financial Group Inc. (KB Group) and the company’s subsequent delisting from the Korea Exchange. The KB Group previously owned 39.81% of KB Insurance’s shares.
A.M. Best’s discussions with KB Insurance’s management team on the company’s business plan and strategic direction are still at an early stage. Nonetheless, the rating actions reflect the financial and operational benefits that KB Insurance will derive from being a key operation within a larger and stronger financial organization. The KB Group’s major operating entity, the Kookmin Bank, is South Korea’s largest bank by total assets. The KB Group, for its part, will benefit from the diversification and synergy that will come from transforming KB Insurance into a fully owned non-life insurance subsidiary.
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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