A.M. Best Affirms Rating of Wing Lung Insurance.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 9, 2003 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Wing Lung Insurance Company Limited, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. . The outlook is stable. The rating reflects Wing Lung Insurance's strong underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. profitability; adequate loss reserves for the long-tail business lines; prudent reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. protection; conservative investment portfolio; and the general insurance industry's much improved pricing environment. The company is one of the fastest-growing carriers of employees' compensation (E/C E/C Equipment/Component E/C Erik and Christine (Phantom of the Opera fan-fiction) E/C Engineering/Construction Contractor E/C Environment & Communications ) business in Hong Kong, with a year-on-year premium growth rate of 99.4% in 2001. Capitalizing on hardened premium rates, underwriting profitability has improved markedly and compares favorably to that of its peers. The current level of loss reserves is considered to be adequate, notwithstanding the volatile nature of the liability lines' claim patterns. Prudent reinsurance arrangements also provide an additional buffer for the capital base. Balance sheet liquidity remains strong, supported by a preference towards cash and cash equivalents. Offsetting factors include new business strain on capital, increased concentration risk in the underwriting portfolio and declining investment return. Business growth has resulted in pressure on risk-adjusted capital, despite the HKD HKD In currencies, this is the abbreviation for the Hong Kong 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. 100 million (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. 12.8 million) cash injection in 2002 by the Wing Lung Bank Wing Lung Bank (Chinese: 永隆銀行 HKSE: 0096 ) is a mid-sized bank in Hong Kong. As of 2004, it has 37 branches, including one branch in Los Angeles and one branch in the Cayman Islands. . This is exacerbated by increased exposure to specific environmental factors affecting the general liability business, such as the frequency and size of claims, trends in court awards and reinsurance terms. Also affecting the earnings profile is the return on invested assets, which has been on a steady decline since 1998. 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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