The French insurer's decision to wind down its Taiwan branch comes following five years of losses, a failure to scale its business, despite capital support from its parent.
The affirmed Excellent ratings and stable outlook also factor in the neutral impact from the company’s ultimate majority owner, Malayan Banking Berhad (Maybank group).
Direct premiums rose steadily across major lines, while claims growth remained restrained, and fire claims fell, supporting a modest improvement in the loss ratio.
Despite the phased liberalisation of motor and fire pricing, AM Best notes that Lonpac’s robust capitalisation and stable performance continue to underpin its ratings.
