Best’s News & Research Service - March 29, 2018 08:14 AM (EDT)
A.M. Best Comments on Credit Ratings of Macau Insurance Company Limited, Amid Pending Regulatory Decision on Technical Reserves
- March 29, 2018 08:14 AM (EDT)
Hong Kong //BestWire// - A.M. Best has commented that the Credit Ratings (ratings) of Macau Insurance Company Limited (Macau Insurance) (Macau) remain unchanged despite a pending decision by the regulator on the amount of technical reserves required to be guaranteed, which involves fronting business from Typhoon Hato-related claims.
A.M. Best expects the required reserves that are guaranteed by assets will be manageable for Macau Insurance, due to its balance sheet strength. The company had a material capital strengthening in 2017 from the proceeds of disposing its subsidiary, Macau Life Insurance Company Limited. A capital injection of MOP 100 million (USD 12.3 million) from its shareholders to support the company’s medium term business development strategy received regulatory approval and was completed in February 2018.
A.M. Best will continue to monitor the Monetary Authority of Macau’s final decision and will further assess the impact on Macau Insurance’s rating fundamentals once that decision is made.
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