MARCH 25, 2021 09:39 AM (EDT)
AM Best Maintains Under Review With Developing Implications Status for Credit Ratings of Hyundai Insurance (China) Co., Ltd.
|James Chan |
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Senior Director, Analytics
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
HONG KONG - MARCH 25, 2021 09:39 AM (EDT)
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 ratings reflect HIC’s balance sheet strength, which AM Best assesses 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 1,667 million (USD 240 million) as of year-end 2020 from RMB 550 million (USD 79 million) in 2019. Hyundai Marine & Fire Insurance Co., Ltd.’s stake in HIC was diluted to 33% from 100%, whilst Legend Holdings and Dirun each hold a 32% stake.
As the new board of directors appointment has been delayed by the COVID-19 pandemic, HIC’s ratings will remain under review until AM Best concludes a full analysis on how the latest business plan will impact the company’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 Guide to 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.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.