A.M. Best Affirms Credit Ratings of Thaire Life Assurance Public Company Limited

A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-” of Thaire
Life Assurance Public Company Limited (Thaire Life) (Thailand). The
outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Thaire Life’s balance sheet strength, which A.M.
Best categorizes as strong, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management.

Thaire Life’s risk-adjusted capitalization is supported by its moderate
underwriting leverage. In terms of operating performance, the company
continues to generate good returns through underwriting activities and
has consistently maintained a return on equity of more than 20%.

Thaire Life is an established player in Thailand’s life reinsurance
market. In addition to reinsurance capacity, the company offers
value-added services in areas such as product development, distribution
and risk management. These services help Thaire Life strengthen its
relationships with cedants.

An offsetting rating factor is the limited demand for reinsurance among
direct life insurers. The company serves a market dominated by
considerably larger cedants with high premium retentions and low
reinsurance needs. In such an environment, limited growth in size and
scale relative to cedants could diminish Thaire Life’s profile as a
provider of reinsurance protection over time. The company also faces
some cedant concentration risk.

Thaire Life is well-positioned at its current rating level. Negative
rating pressure could result from a weakening of the company’s business
profile or deterioration in operating performance.

Ratings are communicated to rated entities prior to publication.
Unless stated otherwise, the ratings were not amended subsequent to that

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases.

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rating and information source. For more information, visit www.ambest.com.

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