A.M. Best Affirms Ratings of United Overseas Insurance Limited Business Wire HONG KONG -- April 25, 2013 A.M. Best Asia-Pacific Limited has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a+” of United Overseas Insurance Limited (UOI) (Singapore). The outlook for both ratings is positive. The ratings reflect UOI’s strong risk-adjusted capitalization, outstanding operating performance and well-established market presence in the personal and small and medium enterprise (SME) business segments in Singapore. UOI has maintained a strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) and local regulatory capital adequacy ratio. Given its forecasted business growth, UOI’s risk-based capitalization is expected to remain solid in the near term. UOI has a good track record of favorable operating results, which can be largely attributed to its prudent underwriting philosophy. The company has significantly outperformed the Singapore general insurance market in terms of underwriting performance. The favorable return from its investment portfolio also contributed to UOI’s outstanding operating performance. As a member of the United Overseas Bank Limited (UOB) group, UOI benefits from the extensive distribution network of UOB, and has established a solid market presence in the personal and SME business segments. UOI also receives support from UOB in terms of investment and risk management. Offsetting rating factors include the potential volatility in UOI’s investment return as well as the soft and competitive market conditions in Singapore. With 42% of its invested assets in equities as at year-end 2012, UOI’s investment portfolio is exposed to market risk, and its future investment earnings could be impacted by any negative movement in the equity market. However, UOI’s current level of capitalization is adequate to absorb the potential investment earnings volatility over the short to medium term. Future upward rating movements could occur if UOI can further strengthen its enterprise risk management capabilities while maintaining its solid risk-based capitalization and favorable operating performance. Negative rating actions could occur if there is a significant deterioration in UOI’s operating performance or its risk-adjusted capitalization level declines to a level below A.M. Best’s expectations. The methodology used in determining these interactive ratings is 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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. A.M. Best Asia-Pacific Limited is a subsidiary of A.M. Best Company. 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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. Contact: A.M. Best Company, Inc. Yanwei You Associate Financial Analyst +852-2827-3421 firstname.lastname@example.org or Jeff Yeung Associate Director +852-2827-3413 email@example.com or Rachelle Morrow Senior Manager, Public Relations +(1) 908 439 2200, ext. 5378 firstname.lastname@example.org or Jim Peavy Assistant Vice President, Public Relations +(1) 908 439 2200, ext. 5644 email@example.com
A.M. Best Affirms Ratings of United Overseas Insurance Limited
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