Shinkong Insurance, Japan’s third-largest non-life insurer in Japan, has had its Financial Strength Rating of A (Excellent) and its Long-Term Issuer Credit Rating of “a” (Excellent) affirmed by AM Best. The outlook for these ratings is stable.
AM Best assessed Shinkong Insurance’s balance sheet strength as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The company’s risk-adjusted capitalization remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
Shinkong Insurance reported positive underwriting results in 2022, supported by moderate top-line growth and stable operating expenses. The company’s net combined ratio remained stable, due to favourable voluntary motor business and limited impact from large losses. The company’s investment portfolio has been liquid and stable and its reinsurance dependency remains moderate.
Shinkong’s current rating level is stable and the business is well-positioned to maintain the current rating level. However, negative rating actions could occur if there is a substantial decline in its risk-adjusted capitalisation or a material and sustained deterioration in its operating performance.