Tencent-controlled FuSure assigned positive credit rating from AM Best
Ratings agency, AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of the start-up reinsurer and Tencent-owned, FuSure Reinsurance Company Limited (FuSure).To get more latest news on tencent, you can visit shine news official website.
The ratings reflect FuSure’s balance sheet strength, which AM Best assesses as very strong, as well as its operating performance, limited business profile and appropriate enterprise risk management (ERM).
The ratings also reflect the implicit and explicit support from the reinsurers ultimate parent, Tencent, including capital, business development, investment, risk management and operational support.
In addition, AM Best projects FuSure’s risk-adjusted capitalisation to remain at the strongest level throughout the forecast period up to 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). This result is underpinned by expected capital support from its shareholders, prudent investment strategy and retrocession support.
As a start-up reinsurer, FuSure is performing very well, and due to Tencent’s huge presence in China, the reinsurer could potentially grow to become a large player within the Chinese reinsurance market. By leveraging the parent group’s established insurance client network and distribution support, FuSure is actively building its market presence in the Greater China region with a focus on accident and health reinsurance during its initial development phase.
At the same time, AM Best adds that FuSure continues to refine and strengthen its ERM framework, stating that it has defined its risk appetite, established the three lines of defence governance structure, formulated various risk policies and performed stress testing.
AM Best also expects the reinsurer to enhance its ERM further as the company grows in business size and risk exposure increases.
Furthermore, FuSure receives rating enhancement from implicit and explicit support from Tencent, which owns 85% of shares of the reinsurer.
Viewed as a long-term strategic investment of Tencent, AM Best stated that it expects FuSure to benefit from the parent group in terms of effective use of innovation and technology, leading to competitive advantages in product design and pricing sophistication.
Ratings agency, AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of the start-up reinsurer and Tencent-owned, FuSure Reinsurance Company Limited (FuSure).To get more latest news on tencent, you can visit shine news official website.
The ratings reflect FuSure’s balance sheet strength, which AM Best assesses as very strong, as well as its operating performance, limited business profile and appropriate enterprise risk management (ERM).
The ratings also reflect the implicit and explicit support from the reinsurers ultimate parent, Tencent, including capital, business development, investment, risk management and operational support.
In addition, AM Best projects FuSure’s risk-adjusted capitalisation to remain at the strongest level throughout the forecast period up to 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). This result is underpinned by expected capital support from its shareholders, prudent investment strategy and retrocession support.
As a start-up reinsurer, FuSure is performing very well, and due to Tencent’s huge presence in China, the reinsurer could potentially grow to become a large player within the Chinese reinsurance market. By leveraging the parent group’s established insurance client network and distribution support, FuSure is actively building its market presence in the Greater China region with a focus on accident and health reinsurance during its initial development phase.
At the same time, AM Best adds that FuSure continues to refine and strengthen its ERM framework, stating that it has defined its risk appetite, established the three lines of defence governance structure, formulated various risk policies and performed stress testing.
AM Best also expects the reinsurer to enhance its ERM further as the company grows in business size and risk exposure increases.
Furthermore, FuSure receives rating enhancement from implicit and explicit support from Tencent, which owns 85% of shares of the reinsurer.
Viewed as a long-term strategic investment of Tencent, AM Best stated that it expects FuSure to benefit from the parent group in terms of effective use of innovation and technology, leading to competitive advantages in product design and pricing sophistication.