Global credit rating agency AM Best has announced its credit assessment of South Korean insurer Hyundai Marine & Fire Insurance.
On June 23, AM Best assigned Hyundai Marine & Fire Insurance a Financial Strength Rating (FSR) of ‘A’, a Long-Term Issuer Credit Rating (ICR) of ‘a’, and a stable outlook for both ratings.
AM Best stated, “These ratings reflect Hyundai Marine & Fire Insurance’s solid balance sheet strength, adequate operating performance, favorable business profile, and appropriate enterprise risk management.”
The agency further noted, “The company’s various efforts to improve the profitability of new business segments are expected to strengthen the long-term profitability foundation of its insurance products over the coming years. Interest income, a key source of investment returns, increased further last year, partly due to an expanded investment asset base following additional bond issuances.”
AM Best added, “The company’s investment strategy focuses on asset-liability duration matching to mitigate interest rate risk and manage capital volatility. Most of its investment portfolio is allocated to high-quality fixed-income assets.”
AM Best is a global credit rating agency specializing in the insurance industry. It operates regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City, and conducts credit rating activities in more than 100 countries.
