KUALA LUMPUR, Aug 5 — AM Best has affirmed the Financial Strength Rating of B++ (good) and the Long-Term Issuer Credit Rating of ‘bbb+’ of Tune Protect Re Ltd (TPR) Malaysia.
In a statement, the global rating agency said the outlook of these credit ratings is stable.
The ratings reflect TPR’s balance sheet strength, which AM Best described as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The company’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that remains at the strongest level, as measured by Best’s Capital Adequacy Ratio.
The assessment also reflects a neutral holding company impact arising from TPR’s ultimate 100 per cent ownership by Tune Protect Group Bhd.
In addition, AM Best views TPR’s operating performance as strong, with the company having achieved a five-year average (2014-2018) of 56 per cent combined ratio and 54 per cent operating ratio.
TPR has multi-year distribution agreements with AirAsia in a number of its operating countries to provide travel insurance protection to airline customers via a range of local insurance partners, with that business ultimately reinsured by TPR.
AM Best expects TPR to exhibit further advancements to its risk management capabilities over the near term, in order to support continued operational expansion, appropriate management and mitigation of key risks. — Bernama
