AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' of
The outlook of these Credit Ratings (ratings) is stable. CTPIS is a wholly owned subsidiary of
The ratings reflect CTPIS' balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). In addition, CTPIS benefits from rating enhancement from the TPG group.
CTPIS' balance sheet strength assessment is underpinned by risk-adjusted capitalisation that AM Best expects to remain at the strongest level over the medium term, as measured by Best's Capital Adequacy Ratio (BCAR). Despite increased capital requirements from the company's expansion into
The company's operating performance is viewed as adequate. The non-life operations have generated robust underwriting profits over the past five years and in general have performed better than the domestic market average. Despite this, a deteriorating trend in the company's combined ratio has been seen in recent periods, driven by both increasing loss and expense ratios. The company's pre-tax operating results in 2018 and 2019 have also been impacted by elevated start-up costs and technical provisions associated with CTPIS' commencement of its life insurance activities in
AM Best views CTPIS' business profile as neutral. The company is a medium sized player in
AM Best considers CTPIS' ERM approach to be appropriate given the size and complexity of its current operations. Risk management framework and capabilities are viewed to have benefited over a number of years from technical support and guidance provided by the TPG group. Nonetheless, AM Best views the start-up nature of its life operations to result in heightened execution risk over the medium term.
CTPIS' ratings incorporate rating enhancement from the TPG group. Despite CTPIS' operations accounting for a relatively small portion of the group's revenues and earnings, it is considered important to the group in terms of accessing the
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 AM Best's 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in
(C) 2020 Electronic News Publishing, source