Samsung Fire & Marine Insurance CEO Lee Mun-hwa. The insurer has earned an AA rating from S&P Global Ratings. Photo by Samsung Fire & Marine Insurance
SEOUL, Aug. 3 (UPI) — South Korea’s Samsung Fire & Marine Insurance said it has become the country’s first private-sector company to earn an AA rating from international agency S&P Global Ratings.
The nation’s leading non-life insurer noted Sunday that S&P had raised both its financial strength rating and issuer credit rating from AA- to AA, placing it on par with South Korea’s sovereign credit rating.
S&P assigns long-term credit ratings on a scale ranging from AAA to D, comprising more than 20 grades. Among them, AA is the third-highest.
The Seoul-based company said that S&P cited its strong asset-liability management, capital adequacy, profitability and internal capital generation as key factors behind the upgrade.
Samsung Fire, which is led by CEO Lee Mun-hwa, expected that the improved credit rating would further strengthen confidence among individual customers in its financial soundness and claims-paying ability.
For corporate clients, Samsung Fire projected that the upgrade would enhance its capacity to underwrite large-scale commercial and specialty insurance risks down the road.
“The achievement reflects global recognition of our world-class capital strength, risk management capabilities, and sustainable growth potential,” Samsung Fire said in a statement.
“We will continue to provide even more stable insurance services to our customers while growing into a top-tier global insurer trusted by both corporate clients and the global market,” it added.
The share price of Samsung Fire fell 2.53% on the Seoul bourse Monday, while the benchmark KOSPI declined 5.12%.
