AM Best has affirmed the financial strength rating of ‘A’ (Excellent) and the long-term issuer credit rating of ‘a’ (Excellent) of COSCO SHIPPING Captive Insurance, based in China.
The outlook of these credit ratings is ‘stable’.
The ratings reflect the captive’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The company’s balance sheet strength assessment is underpinned by a very low underwriting leverage and a prudent reinsurance programme.
The ratings also reflect that the captive insurer is a strategically important member of its parent company, China COSCO SHIPPING Corporation, and that the firm provides a wide range of support in areas such as business development, risk management, and managerial and capital support.
Its risk-adjusted capitalisation remained at its strongest level in 2023, as measured by Best's capital adequacy ratio.
Over the past five years, the captive has gradually increased its exposure to fixed income investments and equities, with the goal of improving investment results and building a diversified portfolio. The company’s investment portfolio remains liquid with asset risk managed at an appropriate level.
Based on its three-year business plan, the company expects stable premium growth while continuing to deliver a favourable bottom line.
