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FOR IMMEDIATE RELEASE
HONG KONG - FEBRUARY 04, 2013 12:00 AM (EST)
A.M. Best Asia-Pacific Limited has assigned a financial strength rating of A- (Excellent) and issuer credit rating of a- to ECICS Limited (ECICS) (Singapore). The outlook assigned to both ratings is stable.
The ratings reflect ECICS strong risk-based capitalization and favorable operating results in the past five years. The ratings also acknowledge the companys expertise in bonds and guarantees and credit insurance underwriting.
Due to a relatively low underwriting leverage, ECICS has maintained a strong risk-adjusted capitalization level, as reflected by its Bests Capital Adequacy Ratio (BCAR) and local regulatory capital adequacy ratio. The company has demonstrated satisfactory operating results in the past five years, due to its favorable performance in both underwriting and investments. With its operation starting in 1975, ECICS has a proven track record of underwriting expertise in bonds and guarantees, as well as credit insurance. The risk underwritten by the company also is supported by its reinsurance program, with a panel of reinsurers of high credit quality.
Offsetting rating factors include ECICS small share of the general insurance market in Singapore and business concentration risk, as it only focuses on bonds and guarantees and credit insurance. Any adverse movement in Singapores and/or the global economy will negatively impact the companys business growth and operating results.
Negative rating actions could occur if there is a substantial decline in ECICS risk-adjusted capitalization or a significant deterioration in its operating performance.
The methodology used in determining these ratings is Bests Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bests rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: Understanding Universal BCAR; Catastrophe Analysis in A.M. Best Ratings; Evaluating Country Risk; and Risk Management and the Rating Process for Insurance Companies. Bests Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the worlds oldest and most authoritative insurance rating and information source.