A.M. Best Affirms Ratings of ING Life Insurance Korea, Ltd.OLDWICK, N.J. -- 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) and the issuer credit rating of "a+" of ING Life Insurance Korea, Ltd. (INGLK) (South Korea). The outlook for both ratings is positive. The ratings reflect INGLK's growing presence in the Korean life market, strong operating performance and superior risk management. As of fiscal year 2005, the company is the fourth-largest life insurer in the Korean life market with about 5% premium market share. INGLK showed strong growth momentum in a rapidly changing life market landscape. The company recorded a five-year average premium growth of 42%, an asset growth of 67% and a capital and surplus growth of 117%. INGLK's overall earnings have improved steadily over the past five years. As of fiscal year 2005, INGLK's net income increased by 4% 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. 152 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. 154 million). INGLK also has one of the best surrender and lapse ratios and profitability levels compared to its foreign peers. INGLK maintains a conservative investment portfolio with about 70% of investment in fixed income assets. However, investment in equities was minimal. The investment yield improved from 5.9% in fiscal year 2004 to 6.3% in fiscal year 2005. Partially offsetting these factors are the modest capital buffer and continuous challenges in the competitive markets. INGLK has maintained a modest capital buffer over the past five years. Going forward, A.M. Best expects that INGLK's capitalization will remain stable; however, a more solid capital buffer is needed to support its strong business growth and for a possible rating upgrade. The expansion of the 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. channel and popularity of variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. continue to be the key market trends in 2007. A.M. Best believes INGLK will face intense competition from these alternative channels and annuity markets. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the 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. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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