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Capital Life Insurance Company Limited credit ratings withdrawn - AM Best
Last update: 16/12/2019

KUALA LUMPUR, Dec 16 -- AM Best has affirmed the Financial Strength Rating of C- (weak) and the Long-Term Issuer Credit Rating of ‘cc’ of Capital Life Insurance Company Limited (CLI) Papua New Guinea, resulting in stable outlook of these ratings.

Concurrently, these ratings have been withdrawn as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect CLI’s balance sheet strength, which AM Best described as weak, as well as its adequate operating performance, limited business profile and weak enterprise risk management. 

The ratings factor in a neutral impact from the company’s 100 per cent ownership by Capital Insurance Group Limited.

Risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, remained at a very weak level at year-end 2018.

This follows an internal control failure that resulted in notable reserve strengthening of the company’s medical portfolio, which led to a significant decline in shareholders’ equity at 2017-end.

The company’s management team has since implemented a number of remedial actions, including large premium rate adjustments and strengthening of policy conditions.

AM Best continues to view CLI’s business profile as limited given the company’s small scale of operations and niche portfolio of business. It is also viewed to have a moderate level of product concentration and a high level of geographical concentration, with its entire premium base emanating from Papua New Guinea.





100 Yen 3.9686/9736
Source: Bank Negara Malaysia

Reduction in the overnight policy rate (OPR) by Bank Negara Malaysia would be good for consumer spending and investment;
Not sure
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