A.M. Best Affirms Credit Ratings of Fubon Insurance Co., Ltd.

A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of a+ of Fubon Insurance Co., Ltd. (Fubon Insurance) (Taiwan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Fubon Insurances balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

Fubon Insurance continues to maintain a robust risk-adjusted capitalization, supported by prudent reserving practices, a comprehensive reinsurance program and gradual organic growth in retained earnings, despite high dividend payout ratios.

The company has delivered a track record of stable operating profitability, mainly underpinned by favorable investment earnings and profitable results from its domestic underwriting portfolio, although partially offset by operating losses from its China operations. Moreover, a weakened Taiwan dollar in 2017 negatively impacted the companys sizable overseas investment portfolio, leading to a significant foreign exchange loss during the year, despite having been partially hedged by the use of derivatives.

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 

Fubon Insurance’s favorable business profile is underpinned by its market-leading position and solid brand recognition in Taiwans non-life insurance market over the past three decades. As a wholly owned subsidiary of Fubon Financial Holding Co., Ltd., Fubon Insurance benefits from cross-selling synergies with affiliated companies while forming a strategic part of the financial product suite.

Offsetting rating factors include higher volatility in domestic and overseas investment markets, the companys exposure to unhedged foreign currency risk, as well as execution risk in improving the operating profitability of its overseas operations. Moreover, the companys underwriting portfolio is concentrated in catastrophe-prone geographies.

Positive rating actions could occur if the company demonstrates a sustainable improvement in its operating performance while maintaining a robust risk-adjusted capitalization. Negative rating actions could occur if there are material capital or dividend payouts that lead to a substantial decline in its risk-adjusted capitalization.

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 A.M. Bests 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 A.M. Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

A.M. Best
James Chan
Senior Financial Analyst
+852
2827 3418

[email protected]
or
Christie
Lee

Director, Analytics
+852 2827 3413
[email protected]
or
Christopher
Sharkey

Manager, Public Relations
+1 908 439
2200, ext. 5159

[email protected]
or
Jim
Peavy

Director, Public Relations
+1 908 439
2200, ext. 5644

[email protected]

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 
Close
Stay Updated To Save Money & Time. Join Our Free Newsletter. 
. Indepth Analysis & Opinion       Interviews          . Exclusive Reports 
. Free Digital Magazines        . News & updates        . Event Invitations
& Much More Delivered To Your Inbox For Free. 
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.
 
Close