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FOR IMMEDIATE RELEASE
HONG KONG - SEPTEMBER 09, 2022 12:09 PM (EDT)
AM Best has revised the implications of the under review status to positive from developing for the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Blue Cross (Asia-Pacific) Insurance Limited (Blue Cross) (Hong Kong).
The Credit Ratings (ratings) reflect Blue Cross’ balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
These ratings were placed under review with developing implications on 9 March 2022, following an announcement on 4 March 2022, that Blue Cross’ original ultimate parent, The Bank of East Asia, Limited (BEA), entered into an agreement to sell 100% of its shares in Blue Cross to AIA Holdings (Hong Kong) Limited, a wholly owned subsidiary of AIA Group Limited (AIA).
On 26 August 2022, BEA announced the transaction was closed successfully. The consideration paid by AIA Holdings (Hong Kong) Limited for Blue Cross and the bancassurance distribution agreement was approximately USD 289 million (equivalent to approximately HKD 2,268 million) in cash.
The revision of the implications of the under review status to positive from developing reflects AM Best’s expectation of a higher likelihood that Blue Cross is positioned to benefit from implicit and explicit support from AIA. For instance, as part of the group’s integrated health strategy, Blue Cross can leverage the group’s talents and operational resources, as well as network of clinics and health care providers to provide better health insurance solutions to customers at improved efficiencies.
The ratings are expected to remain under review until AM Best completes its evaluation on the impact to Blue Cross’s rating fundamentals from its new business plan and management strategy, as well as the level of implicit and explicit support from AIA.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.