AM Best withdraws credit ratings on Bangkok Insurance Public Company Limited

SINGAPORE-(BUSINESS WIRE)–AM Best affirmed the financial strength rating of B++ (good) and the long-term issuer credit rating of ‘bbb+’ (good) of Bangkok Insurance Public Company Limited (BKI) (Thailand). The outlook for these credit ratings (ratings) is stable. At the same time, AM Best withdrew these ratings as the company requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect the strength of BKI’s balance sheet, which AM Best rates as very strong, as well as its adequate operating results, neutral business profile and appropriate corporate risk management.

BKI’s assessment of balance sheet strength as very strong is supported by its risk-adjusted capitalization, which was at its highest level in 2021 and is expected to remain at least at the very strong level going forward, as measured by the capital adequacy ratio of Best (BCAR). Capital adequacy is supported by the company’s low net underwriting leverage, albeit partially offset by a high-risk investment portfolio comprised of large and concentrated holdings in local equities. In addition, the company has a moderate reliance on reinsurance to manage exposure to catastrophic events, accumulations and large single risks.

AM Best considers BKI’s operating performance to be adequate, as evidenced by a five-year average return on equity of 6.7% and a combined ratio of 91.5% (2017 to 2021). Nonetheless, the company reported underwriting losses in 2021 and the first nine months of 2022 due to the high incidence of COVID-19 claims related to its single-payer health product. Despite the poor performance of BKI’s health business over the past two years, underwriting results for the company’s core lines of motor insurance, industrial risk and fire insurance remain profitable. Although technical and operational results for the first nine months of 2022 were unfavorable, AM Best expects results to improve going forward, especially after the company’s lump sum health policy coverage for COVID-19 expires in mid-2022.

The business profile rating of neutral reflects the company’s position as the third largest non-life general insurer in Thailand with approximately 8.6% market share based on direct premiums written in 2021. The company’s portfolio is moderately diversified across lines of activity, although the entire business originated in Thailand.

Ratings are communicated to rated entities prior to publication. Unless otherwise stated, ratings have not changed since this announcement.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and related disclosures, including details of the agency responsible for issuing each of the individual ratings mentioned in this release, please see AM Best’s web page for recent rating activities. For further information on the use and limitations of credit score opinions, please see Best’s Guide to Credit Scores. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, please see the Guide to the Proper Use of Best’s Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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