A.M. Best Affirms Rating of ING Life Insurance Korea Ltd.[M bwsfo bwoff mrbse onlin sandy newgc ] [AP00bw-dbf ]]]]] Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 13, 2003 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A (Excellent) of ING Life Insurance Korea Ltd, South Korea. The outlook is stable. The rating reflects ING Life Korea's enhanced market presence, excellent profitability, and strengthened capitalization. The rating also reflects its well-balanced insurance portfolio, which is supported by prudent risk management and sound investments. In addition, the company benefits from its position within ING Group's global insurance operations and receives strong business support from the parent. The company increased its market share (measured by total premium amount) in the Korean life market to 1.6% in 2001 from 1.0% in 2000. The company is viewed as one of the life companies in Korea that will benefit from bancassurance Bancassurance A French term referring to the selling of insurance through a bank's established distribution channels. Notes: The result is a bank that can offer banking, insurance, lending, and investment products to a customer. , given its strategic alliance with Kookmin Bank Kookmin Bank (hangul:국민은행) is the largest bank by both asset value and market capitalization in South Korea. The bank is led by Kang Chung-Won who previously worked for Seoulbank and oversaw its sale to competitor Hana Bank before moving to . The partnership will deliver enhanced customer service by broadening the line of products offered and extending the bank's financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to insurance clients. Net income improved to KRW KRW In currencies, this is the abbreviation for the Korean Won. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 37 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 28 million) in 2001 from a net loss of KRW 7 billion (USD 5 million) in 2000, and the 25th month persistency rate has been maintained at over 80% level. Going forward, the company is expected to maintain an adequate level of capitalization to support its business activities through internal capital generation. ING Life Korea's insurance portfolio is prudently managed. Although margin pressure on the annuity business exists due to the depressed investment environment, the potential upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside remains high when market conditions improve. In 2002, the company further diversified its assets into inherently more volatile mutual funds; this is coupled with strict investment guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. in place to limit the amount of risk assets acquired. Offsetting factors include adverse investment conditions and increased competition in the industry. While ING Life Korea will benefit from a flight to quality, it is exposed to the low interest rate environment. The introduction of the revised mortality table ("Fourth Mortality Table") will exert additional pressure on the mortality profit margin. In the foreseeable future, Korea's life industry will remain competitive. Domestic life insurers will continue to penetrate the whole-life market, while other financial institutions will prove to be popular distributors of annuity products. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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