AM Best revises Singapore´s EQI Credit Rating outlook

KUALA LUMPUR, Oct 4 (Bernama) -- AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) of EQ Insurance Company Limited (EQI), Singapore.

The global rating agency and information provider, in a statement, also affirmed EQI’s Financial Strength Rating (FSR) of B++ (good) and the Long-Term ICR of ‘bbb+’. The outlook for the FSR remains stable.

These credit ratings reflect EQI’s balance sheet strength, which AM Best categorised as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The revision of the Long-Term ICR outlook to negative reflects AM Best’s expectation of pressure on the company’s operating performance assessment over the near term.

While the company continues to execute on improvements aimed at returning underwriting performance to a position of profitability, the competitive conditions in Singapore’s insurance market remain a key challenge.

Despite the company exhibiting limited internal capital generation over the past five years (2014 to 2018), shareholder equity has been supported by a series of capital injections from the company’s parent over this period.

AM Best views EQI’s business profile as limited. The company is a small-sized, non-life insurer in Singapore, with a market share of approximately one per cent based on 2018 gross written premium. More information at http://www.ambest.com.

-- BERNAMA