Moody's has assigned South Korea-based Heungkuk Fire & Marine Insurance Co. Ltd. a first-time insurance financial strength rating of Baa1.
The outlook is stable.
Moody's said the rating reflects the company's relatively low risk investment portfolio, diversified distribution channels and improving outlook for profitability.
Heungkuk Fire & Marine's limited operating scale, less favorable product mix and relatively weak capital adequacy levels offset these credit strengths, according to the rating agency. However, Moody's does expect the insurer's profitability outlook to further improve, mainly due to the upward premium adjustment on the insurer's medical indemnity products. A large portion of these products will be repriced during 2018.
