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| [December 21, 2012] |
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A.M. Best Places Ratings of Hanwha General Insurance Company Ltd Under Review with Negative Implications
HONG KONG --(Business Wire)--
A.M. Best Co. has placed under review with negative implications
the financial strength rating (FSR) of B++ (Good) and issuer credit
rating (ICR) of "bbb" of Hanwha General Insurance Company Limited (Hanwha
Insurance) (South Korea).
The under review status reflects the sharp increase in Hanwha
Insurance's credit risk associated with reinsurance recoverables due to
the downgrade of the ratings of BEST RE (L) Limited (BEST RE)
(Malaysia) on 18 December 2012.
Hanwha Insurance ceded premiums related to smartphone insurance to BEST
RE, which continues to report a material deterioration in underwriting
results. The ratings will remain under review pending further
discussionsbetween A.M. Best and Hanwha Insurance's management
regarding the risk-adjusted capitalization.
Best's Credit Rating Methodology, which provides a comprehensive
explanation of A.M. Best's rating process and contains the different
rating criteria employed in the rating process. Key criteria utilized
include: "Understanding Universal BCAR"; "Evaluating Country Risk";
"Catastrophe Analysis in A.M. Best Ratings"; and "Risk Management and
the Rating Process for Insurance Companies." Best's Credit Rating
Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS
RESERVED.
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