AM Best Withdraws Credit Ratings of Bangkok Insurance Public Company Limited

SINGAPORE, February 02, 2023--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb+" (Good) of Bangkok Insurance Public Company Limited (BKI) (Thailand). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect BKI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

BKI’s balance sheet strength assessment of very strong is underpinned by its risk-adjusted capitalisation, which was at the strongest level in 2021 and is expected to remain at least at the very strong level prospectively, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital adequacy is supported by the company’s low net underwriting leverage, albeit partially offset by a high-risk investment portfolio comprised of large and concentrated holdings in domestic equities. In addition, the company has a moderate dependence on reinsurance to manage exposure to catastrophe events, accumulations and large single risks.

AM Best views BKI’s operating performance as adequate, as evidenced by a five-year average return-on-equity ratio of 6.7% and a combined ratio of 91.5% (2017 to 2021). Notwithstanding this, the company reported underwriting losses in 2021 and for the first nine months of 2022 on account of a high frequency of COVID-19 claims pertaining to its lump-sum payment health product. Despite the poor performance of BKI's health business over the past two years, underwriting results from the company's core lines of motor, industrial-all-risks and fire insurance have remained profitable. Although technical and operating performance for the first nine months of 2022 has been unfavourable, AM Best expects results to improve prospectively, particularly following the coverage expiry of the company’s lump-sum COVID-19 health policies in mid-2022.

The business profile assessment of neutral reflects the company’s position as Thailand’s third largest non-life general insurer with an approximate 8.6% market share based on direct premium written in 2021. The company’s portfolio is moderately diversified by line of business, albeit with all business originating from Thailand.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Chris Lim
Senior Financial Analyst
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Christopher Sharkey
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Myles Gould
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Al Slavin
Senior Public Relations Specialist
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Kanika Thukral
Associate Director, Analytics
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