Macau Insurance Company Credit Ratings Affirmed Excellent - AM Best

KUALA LUMPUR, Sept 2 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Macau Insurance Company Limited (MIC).

The outlook of these credit ratings (ratings) is stable, reflecting MIC’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 remained at the strongest level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR).

Although MIC’s strategic asset allocation reflects its appetite for equity investments, market risks are mitigated partially by the company’s surplus capital, diversified equity portfolio and hedging strategy.

In view of the robust solvency level and capital efficiency, MIC has paid 309 million Macanese patacas in a special dividend, executed in two stages in June 2023 and June 2024, to the ultimate parent, Dah Sing Financial Holdings Limited. (100 Macanese patacas = RM52.64)

AM Best in a statement said MIC has applied a 25 per cent dividend payout ratio based on profit after tax starting in 2023 and expects to maintain this dividend payout policy in the near term.

Based on MIC’s business plan, AM Best expects the company’s risk-adjusted capitalisation will remain solid to manage its underwriting and investment risks.

MIC’s operating results have been consistently positive over the past years. Although the combined ratio increased to 91.6 per cent in 2024 due to a rise in the loss ratio, the company has continued to achieve favourable investment gains owing to the changes in fair value of equity investments.

Ranked third in Macau’s non-life insurance market in 2024, AM Best expects MIC to maintain underwriting profitability by expanding its profitable business, with higher premium retention in personal lines.

-- BERNAMA