A.M. Best Places Ratings of Hyundai Insurance (China) Co., Ltd. Under Review
With Negative Implications
HONG KONG -- December 13, 2013
A.M. Best Asia-Pacific Limited has placed under review with negative
implications the financial strength rating of A- (Excellent) and issuer credit
rating of “a-” of Hyundai Insurance (China) Co., Ltd. (HIC) (China).
The under review status reflects the material increases in HIC’s credit and
liquidity risks due to the extremely large fire loss at the memory chip maker,
SK Hynix Inc., at its factory in Wuxi, China in September 2013.
As the leading underwriter of these risks, HIC is expected to see significant
deterioration in its risk-adjusted capitalization given the impact of the
gross insurance loss on both credit risk related to reinsurance recoveries and
overall liquidity. The ratings will remain under review pending further
discussions between A.M. Best and HIC’s management regarding measures to
restore the company’s risk-adjusted capitalization.
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
Ratings are communicated to rated entities prior to publication, and unless
stated otherwise, the ratings were not amended subsequent to that
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.
Seewon Oh, +852-2827-3404
Senior Financial Analyst
Rachelle Morrow, +(1) 908 439 2200, ext. 5378
Senior Manager, Public Relations
Moungmo Lee, +852-2827-3404
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
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