New book by Larry Connors Click here Improve your trading - See how
(BW)(NJ-A.M.-BEST)
A.M. Best Affirms Ratings of Sun Hung Kai Properties Insurance Limited
International News Desks/Business Editors
OLDWICK, N.J.--(BUSINESS WIRE) - Mar. 24, 2009--A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Sun Hung Kai Properties Insurance Limited (SHKPI) (Hong Kong). The outlook for both ratings is stable.
The ratings reflect SHKPI's sustained favorable operating profitability, improved liquidity in its investment portfolio resulting in stronger risk-based capitalization, and niche distribution network.
SHKPI has a good business niche and stable distribution network. As part of Sun Hung Kai Properties Group, one of the leading property development conglomerates publicly listed in Hong Kong, SHKPI benefits from its parent's brand recognition and affiliations within the group, which has enabled it to maintain a quality book of business.
SHKPI has consistently maintained a relatively low retention of risks written. Its historically favorable underwriting performance is driven by consistent improvement in the loss ratio and alleviation of acquisition costs through reinsurance commission income over the past five years to 2008. The company's combined ratio stood at 40% for fiscal year 2008 and averaged 54% during fiscal years 2004-08.
SHKPI is adequately capitalized to support its current ratings. In view of the company's prospective business growth, its net premium leverage ratio is expected to remain at a conservative level through 2009 (0.34 times for fiscal year ended June 2008). A gradual decrease in private equity investments and asset reallocation to cash or highly liquid assets are likely to improve the company's risk-based capitalization, as measured by Best's Capital Adequacy Ratio, in the near future.
The offsetting factors are potential weaker investment performance and continued softening market conditions.
For the first half of fiscal year 2009 (July - December 2008), SHKPI's investment performance weakened compared to the same period in 2007, primarily as a result of the turmoil in the financial markets. In addition, the company's underwriting profitability for 2009 is challenged to return to its 2008 performance, due mainly to higher expected loss experiences and the continued soft premium rates in employees' compensation business. The potential volatile capital market environment, continued soft market conditions and the company's lower level of anticipated premium production could adversely affect SHKPI's operating profitability in the near term.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.Analysts:
Stella Ng,
+852-2827-3407
stella.ng@ambest.com
or Terrence Wong,
+852-2827-3403
terrence.wong@ambest.com
or Public Relations:
Jim Peavy,
+(1) 908 439 2200, ext. 5644
james.peavy@ambest.com
or Rachelle Morrow,
+(1) 908 439 2200, ext. 5378
rachelle.morrow@ambest.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
