Fitch Ratings Etiqa Insurance Berhad fiscal forcefulness rating at 'A' : Fitch Ratings has affirmed Malaysia-based Etiqa Insurance Berhad's insurer fiscal forcefulness rating at 'A' alongside stable outlook. Fitch says the rating reflects EIB's broad distribution coverage, strong premium growth, a rails tape of audio operating performance in addition to its condition equally a gist fellow member within Maybank Ageas Holdings Berhad (MAHB).
The rating recognises the company's solid risk-based capitalisation in addition to strong liquidity seat despite probable higher fiscal leverage afterwards the proposed effect of subordinated debt inward Apr 2013.
Fitch says EIB continues to hold strong premium increment momentum through its bancassuance partnership alongside Malayan Banking Berhad (Maybank) in addition to through its broad way coverage across Malaysia.
Premium written from full general in addition to life insurance operations grew 18% in addition to 88%, respectively, for the 12 months ended June 2012. Motor insurance in addition to marine, aviation in addition to transit (MAT) businesses are telephone commutation increment drivers of EIB's full general insurance's portfolio.
Business character of the company's non-life insurance portfolio remains audio although its combined ratio deteriorated to 94.3% for the 12 months ended June 2012 from 91.3% over the same catamenia inward 2011. Mortality make in addition to investment render contributed favourably to the operating profitability of EIB's life insurance business.
EIB has maintained upper-case missive of the alphabet forcefulness to back upward ongoing describe of piece of occupation concern increment in addition to to absorb potential property volatility. Its regulatory risk-based capitalisation was most 247% at end-June 2012, good inward excess of the statutory minimum benchmark of 130%.
In thought of EIB's prevailing operating margin (3.1% pre-tax render on assets for the 12 months ended June 2012), Fitch believes EIB's fiscal flexibility volition stay audio afterwards the planned subordinated debt issue. Fitch expects MAHB's fiscal leverage to rising higher upward 10% post service debt effect from cypher at end-June 2012.
With to a greater extent than than 30% of its full general insurance in addition to shareholders' investments allocated to cash in addition to deposits at end-June 2012, EIB has strong liquidity to run into claims from insurance liabilities.
Liquid assets (including structured deposits) accounted for most 2.55x of its general insurance's cyberspace technical reserves at end-June 2012.
Partly offsetting these positive attributes includes the market-wide adverse claims sense of the third-party motor insurance describe of piece of occupation concern in addition to upper-case missive of the alphabet re-allocation inside the operating entities of MAHB due to a alter inward Malaysian takaful regulatory upper-case missive of the alphabet regime.
Additionally, EIB has placed greater emphasis on regular premium life products to strengthen its increment sustainability equally a meaning portion of its premiums nonetheless comes from unmarried premium investment-linked products which are sensitive to equity marketplace performance.( Story provided past times StockMarketWire.com )