AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa-' (Superior) of
The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of companies below).
The ratings reflect SJ's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).
SJ's balance sheet strength assessment reflects the company's strongest level of risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR). While the company's financial leverage remains conservative with adjusted debt leverage ratios below 25%, the ratio is relatively high compared with most of the major domestic non-life insurers in
SJ has a track record of strong operating performance, mainly supported by its consistent premium growth and a five-year average return on equity of 8.4% (fiscal year 2017 - 2021), as calculated based on comprehensive income. SJ continues to maintain a strong domestic non-life insurance business, which has an average five-year combined ratio of 96.3% (fiscal years 2017 - 2021), excluding premiums and losses from its compulsory automobile liability insurance (
SJ is the core operating unit of
The stable outlooks reflect AM Best's expectation that SJ will maintain its overall balance sheet assessment, supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR, while ongoing strategic initiatives will help maintain its strong and consistent operating performance over the intermediate term.
Negative rating actions could occur if there is material deterioration in risk-adjusted capitalisation caused by substantial investment losses or a large-scale natural catastrophe. Negative rating actions could also occur if there is significant deterioration in
The FSR of A+ (Superior) and the Long-Term ICRs of 'aa-' (Superior) have been affirmed with a stable outlook for the following subsidiaries of
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 use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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