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Credit Rating Report

Credit Rating Report

Rating RATIONALE:

Asia Pacific General Insurance Company Ltd. has been rated by Alpha Credit Rating Limited (Alpha Rating) on the basis of Audited Financial Statement for the year ended December 31, 2014 and Unaudited Financial Statements for the year ended December 31, 2015. The summary of year wise rating position is presented below:

Date of Declaration

Date of Validity

Long Term

Short Term

Out Look

May 04, 2016

May 03, 2017

A+

AR-2

Stable

February 19, 2015

February 18, 2016

A+

AR-2

Stable

September 25, 2013

September 24, 2014

A

AR-2

Stable

 

Long Term “A+” means:

The Company rated as “A+” (pronounced single A plus) in the long-term which indicates strong financial capability to pay claims & long term obligation.

Short Term “AR-2” means:

The Company rated as“AR-2” in the short-term which means to good capacity to meet up short term obligation in a timely manner.

The Stable Outlook assessed by Alpha Rating reflects that, upside and down side risks to the rating are currently well balanced.

Strengths & CHALLENGES:

Strengths:

  • Experienced management personnel.
  • Strong marketing and distribution network.
  • Diversified Investment portfolio.
  • Improving underwriting performance.
  • Increased profitability.
  • High solvency margin.

 

Challenges:

  • High management expense.
  • Small market share.
  • Exposed to capital market Investment risk.
  • Strong market competition.
  • Compliance of new Insurance Act.