RAM Ratings reaffirmed the AA2/Stable/P1 insurer financial strength ratings of Hong Leong Assurance Bhd.
The rating agency said the ratings reflect the company's strong core performance, strong new business generation, favorable operating efficiency and robust balance sheet amid a challenging and competitive environment.
The insurer's high-productivity agency force and consistent efficiency have sustained profitability. Its capital adequacy ratio, which remains healthy at above 200%, provides an ample buffer against insurance liabilities.
The ratings may be upgraded if the company attains constant improvement in its operating metrics without compromising earnings quality, profitability or capitalization.
Conversely, persistent deterioration in new business growth or substantial investment losses could lower the ratings.