HONG KONG–(BUSINESS WIRE)–A.M. Best has placed under review with negative implications the
financial strength rating of A- (Excellent) and the issuer credit rating
of “a-” of Hyundai insurance (China) Co., Ltd. (HIC) (China).
The under review status reflects the material increases in HIC’s credit
and liquidity risks due to losses caused by the explosions at Tianjin
port on Aug. 14, 2015. According to various media sources, Hyundai Motor
Company (Hyundai Motor), Korea’s major car maker, had about 4,000
Hyundai and KIA vehicles at Tianjin port. Although the loss survey is
on-going, A.M. Best expects HIC to have a sizeable gross loss from the
explosions given the fact it's underwritten all property risks related
to Hyundai Motor. A.M. Best expects this exposure to lead to a
significant increase in credit risk related to reinsurance recoveries as
well as overall liquidity risk. The ratings will remain under review
pending further discussions between A.M. Best and HIC’s management
regarding measures to restore the company’s risk-adjusted capitalization.
Ratings are communicated to rated entities prior to publication.
unless stated otherwise, the ratings weren't amended subsequent to that
This press release relates to rating(s) that have been published on
A.M. 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 visit A.M. Best’s Ratings
& Criteria Center
& Criteria Center.
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Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS
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