A.M. Best Affirms Rating of Pacific Century Insurance Company Ltd.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 30, 2002 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 Pacific Century Insurance Company, Ltd. (PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). ) and Pacific Century Insurance Holdings Pacific Century Insurance Holdings Limited (PCI, HKSE: 0065 ) is an insurance company based in Hong Kong. It is separately listed in Hong Kong, and is controlled by Pacific Century Regional Developments Limited (PCRD), the parent company of PCCW. , Ltd. (PCI Holdings), both incorporated in Bermuda. The rating reflects the organization's excellent capitalization, stable operating performance, sound investment strategy and products. Following PCI Holdings' initial public offering in July 1999, the company's capital has achieved a consistent annual growth of 9%. PCI's financial strength is further demonstrated by its outstanding Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ). The company's flexible liability structure is another major factor that the current rating considers. Offering non-guaranteed products allows the company to promptly respond to investment opportunities and to adjust to economic conditions. The conservative and highly liquid investment portfolio--which is comprised of mostly investment grade bonds and deposits--contributes to the stability of PCI's operating performance. While investment income has declined in line with prevailing market conditions, it is still a stable source of income for the company. Offsetting the positive factors are the company's declining agency force and dependence on its agent distribution channel. The company's extensive agency force has historically been a competitive advantage; however, its ability to sustain growth has been challenged by several factors including intensified competition for qualified agents and competitors' increasingly popular alternative distribution channels such as 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. . The current economic climate will put additional pressure on new business volume. These problems reflect a changing industry landscape, which the company must address in order to stay competitive. These macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. trends as well as continued speculation surrounding the company's future ownership will be monitored closely by A.M. Best. 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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