KUALA LUMPUR, Sept 19 (Bernama) — AM Best has affirmed the financial strength rating (FSR) of A++ (Superior) and the long-term issuer credit ratings (Long-Term ICR) of “aa+” (Superior) of South Korea‘s Samsung Fire & Marine Insurance Co Ltd (SFM) and its subsidiaries in the United Kingdom, Vietnam and Singapore.
In a statement, AM Best said the subsidiaries are Samsung Fire & Marine Insurance Company of Europe Ltd, Samsung Vina Insurance Co Ltd and Samsung Reinsurance Pte Ltd.
Concurrently, AM Best has affirmed the FSR of A- (Excellent), the Long-Term ICR of “a-” (Excellent), and the Indonesia National Scale Rating of aaa.ID (Exceptional) of PT Asuransi Samsung Tugu (AST). The outlook of these credit ratings (ratings) is stable.
SFM’s ratings reflect its strongest-level capitalisation, robust underwriting, market-leading position in South Korea, and superior enterprise risk management. The insurer holds a 22 per cent market share in the non-life sector and boasts the highest regulatory solvency ratio among peers—even under stricter capital rules.
Backed by a debt-free position, low underwriting leverage, and a conservative investment strategy, SFM remains well-insulated from market shocks despite exposure to affiliated equity holdings. Its long-term and auto insurance lines continue to outperform the market.
Meanwhile, the ratings of AST reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate ERM. The ratings also recognise the wide range of support provided by AST’s parent, SFM.
AST’s ratings acknowledge its strong capital adequacy, exceptional underwriting profitability, and strategic integration with SFM. The firm posted an average combined ratio of just 28.6 per cent over the past five years, driven by low expenses and reinsurance commissions.
While both companies are on firm footing, AM Best notes that negative rating actions could arise from capital deterioration, reduced parental support, or declining performance. Conversely, improved operating metrics or market expansion could lead to upgrades.
SFM continues to expand internationally, with recent moves in the United States and China, while AST looks to grow its local Indonesian footprint in tandem with SFM’s global strategy.
— BERNAMA
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