KUALA LUMPUR, Oct 8 -- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of ‘aa-’ of Construction Guarantee Cooperative (CG) South Korea.
In a statement, the global credit rating agency which specialises in insurance industry said the outlook of these ratings was stable.
These ratings reflect CG’s balance sheet strength, which AM Best described as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
CG’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, is at the strongest level, underpinned by the company’s large absolute capital base and extremely low net underwriting leverage.
The company’s highly conservative investment strategy, which prioritises liquidity to secure funds for surety claims and also provide loans to its members, helps maintain stability on its robust risk-adjusted capital position.
CG’s surety segment performance has not been impacted significantly by COVID-19-related losses during the 2020-first half, due to stable and increasing levels of new construction in the public sector and a continuously favourable private housing market in South Korea.
AM Best notes that over 70 per cent of the projects underwritten are from the public sector and involve central and local governments.
More details on the ratings at www.ambest.com
-- BERNAMA
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