Seoul: AM Best has affirmed the financial strength rating (FSR) of A++ (Superior) and the long-term issuer credit ratings (Long-Term ICR) of 'aa+' (Superior) of South Korea's Samsung Fire and Marine Insurance Co Ltd (SFM) and its subsidiaries in the United Kingdom, Vietnam, and Singapore.
According to BERNAMA News Agency, the subsidiaries include Samsung Fire and Marine Insurance Company of Europe Ltd, Samsung Vina Insurance Co Ltd, and Samsung Reinsurance Pte Ltd. Concurrently, AM Best has affirmed the FSR of A- (Excellent), the Long-Term ICR of 'a-' (Excellent), and the Indonesia National Scale Rating of aaa.ID (Exceptional) of PT Asuransi Samsung Tugu (AST). The outlook of these credit ratings is stable.
SFM's ratings are attributed to its strongest-level capitalization, robust underwriting, and market-leading position in South Korea, along with superior enterprise risk management. The insurer holds a 22 percent market share in the non-life sector and boasts the highest regulatory solvency ratio among peers, even under stricter capital rules.
The company maintains a debt-free position, low underwriting leverage, and a conservative investment strategy, ensuring resilience against market shocks despite exposure to affiliated equity holdings. Its long-term and auto insurance lines consistently outperform the market.
Meanwhile, the ratings of AST reflect its balance sheet strength, assessed as strong by AM Best, alongside strong operating performance, limited business profile, and appropriate enterprise risk management. The ratings also recognize the wide range of support provided by AST's parent, SFM.
AST's ratings are bolstered by its strong capital adequacy, exceptional underwriting profitability, and strategic integration with SFM. The firm reported an average combined ratio of just 28.6 percent over the past five years, driven by low expenses and reinsurance commissions.
While both companies are on firm footing, AM Best notes potential negative rating actions could stem from capital deterioration, reduced parental support, or declining performance. Conversely, improved operating metrics or market expansion could lead to upgrades.
SFM continues to broaden its international presence, with recent activities in the United States and China, while AST aims to enhance its local Indonesian footprint in line with SFM's global strategy.