AM Best Comments on Credit Ratings of Thaire Life Assurance Public Company Limited

SINGAPORE–(BUSINESS WIRE)–AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Thaire Life Assurance Public Company Limited (Thaire Life) (Thailand), both with negative outlooks, remain unchanged in view of the expectation of an increasingly challenging operating environment caused by the prevailing COVID-19 pandemic.

AM Best expects the COVID-19 pandemic to contribute further to the existing challenging market conditions in Thailand’s life and health market. AM Best expects this environment to drive potential pressure on Thaire Life’s operating performance fundamentals over the near-to-medium term. The negative outlooks assigned in 2019 already reflect AM Best’s ongoing concern regarding the company’s ability to maintain strong operating performance. In addition, the company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is viewed to be very sensitive to future potential increases in mortality rates given its modest capital base and concentration to life risks. Nonetheless, AM Best does not view the current impact of the pandemic on the company’s financial condition to be significant given the limited amount of COVID-19-related claims that the company has received to date.

AM Best continues to monitor the effects of the COVID-19 pandemic closely and any impact on the rating fundamentals of Thaire Life.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Contacts

Chris Lim
Financial Analyst
+65 6303 5018
chris.lim@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Doniella Pliss
Director, Analytics
+65 6303 5024
doniella.pliss@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com