  |
|
 |
| |
 |
¤ýHome > SGIC in the News |
| |
|
|
| Subject |
|
S&P: SGIC Upgraded To 'A-' On Strong Operating Performance |
|
|
|
|
|
S&P: Seoul Guarantee Insurance Co. Upgraded To 'A-' On Strong Operating Performance; Outlook Stable
Tokyo, January 22, 2008 — Standard & Poor's Ratings Services today raised its counterparty credit and insurer financial strength ratings on Seoul Guarantee Insurance Co. (SGIC) to 'A-' from 'BBB+', reflecting the company's strong operating performance. The outlook on the ratings is stable.
SGIC has recorded stronger-than-expected operating performance over the past few years, backed by the company¡¯s improved risk management system, reduced exposure to riskier business lines, and strong pricing power based on its monopolistic position. The company has strengthened its underwriting discipline, backed by its improved risk management. Supported by these improvements and the prevailing Korean credit cycle, SGIC¡¯s loss ratio has stabilized at a three-year average of 16.9% compared with a 10-year average of 143.3%. As a result, the company recorded stronger operating performance as evidenced by an increase in ROR to 56% in fiscal 2006 (ended March 31, 2007) from negative 19% in fiscal 2002 and negative 86% in fiscal 200l. Over the next few years, SGIC is expected to maintain its strong operating performance, and thus improve its capitalization, backed by strong regulatory support, which enables the company to maintain its monopolistic position and solid profit margins.
As well as the company¡¯s dominant position in the domestic market and strong earnings, the ratings on SGIC also reflect support from the government of Korea (local currency: A+/Stable/A-1; foreign currency: A/Stable/A-1). Offsetting factors include past high volatility in the company¡¯s earnings and its market-sensitive investment portfolio.
The stable outlook reflects Standard & Poor's expectation that the company will continue to generate strong earnings over the next few years. The ratings could be lowered if ongoing discussions on market liberalization accelerate, or are realized in a way that negatively impacts government support to SGIC or the company¡¯s operating performance.
A Korean-language version of this media release is available via standardandpoors.co.kr or via Standard & Poor's CreditWire Korea on Bloomberg Professional at SPCK <GO>. Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search.
|
|
|
|
| Regist Date |
|
2008/01/23 |
|
|
|
|
|
|
|
|
|
|
|
