HONG KONG--(BUSINESS WIRE)--AM Best has maintained the under review with developing implications status for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Hyundai Insurance (China) Co., Ltd. (HIC) (China).
The Credit Ratings (ratings) reflect HIC’s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
These ratings were placed under review with developing implications on 30 July 2019, following an announcement that HIC planned to raise additional capital through four new investors. On 10 March 2020, HIC obtained regulatory approval to receive capital injections from four new investors, namely Legend Holdings Corporation (Legend Holdings); Dirun (Tianjin) Technology Co., Ltd. (Dirun); Anhui Easy-Biz Digital Technology Co., Ltd.; and Ningbo Meishan Bonded Port Area Sequoia Yaosheng Equity Investment Partnership. Following the capital injections, HIC’s paid-in capital increased to RMB 1.7 billion (USD 240 million) from RMB 550 million (USD 79 million). Hyundai Marine & Fire Insurance Co., Ltd.’s stake in HIC has been diluted to 33% from 100%, while Legend Holdings and Dirun each hold a 32% stake.
As the new board of directors appointment has been delayed by COVID-19, HIC’s ratings will remain under review until AM Best concludes its discussions with the company’s shareholders and new management team. The extended under review status reflects the uncertainty over HIC’s credit profile and how future business plans could impact HIC.
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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