Oct. 5th 2018, A.M. Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” to COSCO SHIPPING Captive Insurance Co., Ltd. (COSCO SHIPPING Captive). The outlook assigned to these Credit Ratings (ratings) is stable. It is the first time for COSCO SHIPPING Captive to achieve a rating.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Its rating methodologies and results are widely recognized by the international insurance and reinsurance industry. According to A.M. Best’s rating methodologies, Financial Strength Rating of A (Excellent) means the rated company has a very strong balance sheet strength and an excellent operating performance.
COSCO SHIPPING Captive, which is wholly-owned by China COSCO SHIPPING Corporation Limited (COSCO SHIPPING), was founded on Feb. 17 2017. The captive is registered in China (Shanghai) Pilot Free Trade Zone. As the first captive in Shanghai and the first shipping captive in China, COSCO SHIPPING Captive mainly underwrites marine business for the group and its affiliates, as well as other risks stemming from COSCO SHIPPING’s operations including liability, property, cargo, and group accident and health.
These ratings have a positive value to both the captive and insurance industry in China. These ratings marked that the operational mode and risk management capability of captives in China have achieved further international recognition. It may probably play an important role to promote the reform of the corporation risk management mode for insurance industry as well as the development of captive industry in China.