AM Best has reaffirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (ICR) of “aa+” (Superior) for Samsung Fire & Marine Insurance Co., Ltd. (SFM) and its subsidiaries. This includes Samsung Fire & Marine Insurance Company of Europe Limited (UK), Samsung Vina Insurance Co., Ltd. (Vietnam), and Samsung Reinsurance Pte. Ltd. (Singapore).
Additionally, AM Best affirmed the FSR of A- (Excellent), the Long-Term ICR of “a-” (Excellent), and the Indonesia National Scale Rating of aaa.ID (Exceptional) for PT Asuransi Samsung Tugu (AST) in Indonesia. The outlook for these ratings remains stable.
SFM’s ratings reflect its exceptionally strong balance sheet, solid operating performance, favorable business profile, and very strong enterprise risk management (ERM).
AST’s ratings are based on its strong balance sheet, solid operating performance, and suitable ERM, despite a more limited business profile. These ratings also recognize the substantial support provided by AST’s parent company, SFM.
SFM’s risk-adjusted capitalisation is expected to stay at the strongest level over the medium term, as measured by AM Best’s Capital Adequacy Ratio (BCAR), mainly due to its solid available capital. The company also maintains the highest regulatory solvency ratio among non-life insurers in South Korea, even after transitioning to a stricter solvency regime. Looking ahead, SFM plans to use its excess capital for growth opportunities and shareholder returns.
Although SFM’s capital is exposed to some market volatility due to changes in the market value of its stock holdings, its risk-adjusted capitalisation has proven resilient under various capital market stress scenarios. The company’s balance sheet strength is also bolstered by its debt-free position, low underwriting leverage, and conservative investment strategy.
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