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Fitch affirms HSBC Amanah Takaful at IFS 'A-'/Stable.

Investments reside mostly in fixed-income instruments, as well as cash and fixed deposits

Fitch Ratings said it has affirmed HSBC Amanah Takaful's (Malaysia) rating at 'A-' with Stable Outlook.

Fitch said the rating reflects continuing parental support from HSBC Holdings, given its important complementary role in the insurance franchise of the HSBC Group.

"HSBCAT benefits from its parent's widely recognised brand name, product and distribution capabilities, as well as other management resources. The rating also incorporates HSBCAT's conservative investment mix, sound capitalisation, and prudent management," Fitch said.

"On the other hand, the rating is constrained by the Takaful operator's limited track record, modest size, amid intensive market competition. Additionally, the company is challenged to manage its expenses appropriately as it builds up its business portfolio," it added.

HSBCAT's investments reside mostly in fixed-income instruments, as well as cash and fixed deposits. Based on preliminary estimates, at end-2011, 17 per cent of its total invested assets on an aggregate basis were allocated to cash and bank deposits, while 81 per cent resided in fixed income instruments.

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Publication:CPI Financial
Date:Mar 1, 2012
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