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FOR IMMEDIATE RELEASE
HONG KONG - JULY 03, 2019 02:09 PM (EDT)
AM Best has placed under review with positive implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Century Insurance Company (Guam) Limited (CIC Guam) (Guam).
These Credit Rating (rating) actions reflect the potential improvement in CIC Guam’s business profile, as well as the potential support from its new majority shareholder, DB Insurance Co., Ltd. (DBI), following the announcement on July 1, 2019 by DBI that it has signed an agreement with CIC Guam’s parent company, Tan Holdings Corporation (THC). Under the agreement, DBI will acquire an 80 percent stake in each of THC’s three insurance subsidiaries, including CIC Guam and two other insurers in Saipan and Papua New Guinea. DBI also is expected to secure the management rights in all three companies. In AM Best’s view, the acquisition could enhance CIC Guam’s underwriting efficiency and market competitiveness as its business integrates with DBI’s existing Guam branch, which started operations in 1984 and maintains a leading position in the Guam property/casualty market. Both entities’ underwriting portfolios are focused on commercial accounts and together comprise approximately a quarter of Guam’s non-life market share.
The transaction remains subject to regulatory approval and is expected to close in the second half of 2019. CIC Guam’s ratings will remain under review until the close of the transaction, while AM Best continues to conduct further discussions with CIC Guam’s and DBI’s management teams to fully assess the impact to CIC Guam’s credit profile.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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