S&P Global Ratings has affirmed Bangkok Insurance Public Co. Ltd.s ‘A-‘ local currency long-term issuer credit and financial strength ratings with a stable outlook.
This affirmation follows the publication of S&P Global Ratings’ revised criteria for analysing insurers’ risk-based capital on 15 Nov. 2023. S&P said, “Based on our new criteria, we continue to assess the capital and earnings of Bangkok Insurance Public Co. Ltd. as very strong.”
The stable outlook reflects the expectation that Bangkok Insurance will maintain its strong business and financial position over the next two years.
“The stable outlook reflects our view that Bangkok Insurance will maintain its dominance in the Thai property/casualty (P/C) insurance market, supported by business prudence and tightened management of risk exposure,” S&P Global Ratings said.
An upgrade of Bangkok Insurance is considered less likely in the next 24 months. However, S&P Global Ratings indicated that an upgrade could occur if the insurer’s financial risk profile strengthens.
This could happen due to consistently higher prospective levels of capital adequacy, with no deterioration in risk exposure and funding structure, or improved risk exposure owing to reduced investment concentration or increasing investment diversification.
S&P also mentioned potential risks to the ratings and that ratings may be lowered if Bangkok Insurance’s capitalisation weakens due to a decline in underwriting performance or persistent deterioration in equity markets, resulting in substantial capital impairment.
The ratings could also be downgraded if Bangkok Insurance’s catastrophe risks increase substantially or if the insurer’s susceptibility to a sovereign default rises. Additionally, a downgrade could occur if the industry and country risk assessment on Thailand’s P/C sector deteriorates, S&P said.
Bangkok Insurance is a non-life insurance company based in Thailand which is listed on the Stock Exchange of Thailand. Established in 1947, the company offers a range of insurance products, including motor, property, marine, and health insurance.
