AM Best Affirms Strong Credit Ratings For Taiwan's Nan Shan General

KUALA LUMPUR, April 2 (Bernama) -- AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) for Taiwan’s Nan Shan General Insurance Co Ltd (Nan Shan General), with a stable outlook.

In a statement, AM Best said these credit ratings reflected Nan Shan General’s very strong balance sheet, adequate operating performance, neutral business profile, and appropriate enterprise risk management.

Nan Shan General’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), remained at a very strong level at the end of 2024, supported by positive earnings growth and partial profit retention.

The company’s capital strength is bolstered by a balanced insurance risk profile, controlled asset risk, and a reinsurance programme placed with highly rated reinsurers. However, a moderately high dividend payout ratio may slow organic capital growth over the short to intermediate term.

Nan Shan General recorded a significant rise in operating results in 2024, with stable underwriting and investment performance contributing to double-digit return on equity. Its top-line growth has continued to outperform the industry, driven by voluntary motor, travel insurance, and commercial lines.

Meanwhile, loss experience stabilised following the settlement of pandemic insurance claims in 2023, despite an increasing premium retention level in voluntary motor, travel insurance and commercial fire lines.

Nan Shan General’s investment returns improved, supported by steady interest income from its bond portfolio. AM Best expects the company to maintain its focus on domestic fixed-income securities while keeping moderate exposure to equity investments to enhance overall returns.

As a wholly owned subsidiary of Nan Shan Life Insurance Co Ltd (Nan Shan Life), Taiwan’s third-largest life insurer by total assets, Nan Shan General benefits from brand recognition, strong distribution synergy, and capital commitments.

-- BERNAMA