Fidelidade Macau, one of the city’s top insurers, has been assigned an A3 insurance financial strength rating (IFSR) for the first time from leading ratings agency Moody’s, which considers that the insurance company’s outlook is stable.
The A3 IFSR “reflects the insurer’s strong underwriting profitability and capitalization, along with its prudent investment allocation”, Moody’s said in a statement, while stressing that “Fidelidade Macau has reported strong underwriting profit with its combined ratio below 80% since 2017”. In addition, the insurance company “benefits from its banking partnership which helped them distribute profitable lines of business, including fire insurance”.
Moody’s added that the first-time assignment of A3 rating to Fidelidade Macau also takes into consideration the its governance as part of our environmental, social and governance (ESG) factors.
As ratings measure insurance companies’ creditworthiness, “A” generally indicates that a company is on strong financial footing.
The outlook is stable, as Moody’s expects that Fidelidade Macau “will maintain its strong underwriting profitability and capitalization in the next 12-18 months”.
Fidelidade Macau CEO Paulo Barbosa said “this was the culmination of a collective effort across the Company towards the same goal: to be the most preferred insurance company, trusted partner with intermediaries, provider of quality and innovative products and services according to the highest ethical standards”.
In the same statement, Ivan Cheung, the insurer’s Executive Director, praised the company’s team which has been doing “an outstanding job throughout these years, protecting our individual and corporate customers helping them to achieve and enhance their protection and financial prosperity”.