Market Overview

A.M. Best Affirms Credit Ratings of EQ Insurance Company Limited


A.M. Best has affirmed the Financial Strength Rating of B++
(Good) and the Long-Term Issuer Credit Rating of "bbb+" of EQ Insurance
Company Limited (EQI) (Singapore). The outlook of these Credit Ratings
(ratings) is stable.

The ratings reflect EQI's balance sheet strength, which A.M. Best
categorizes as strong, as well as its adequate operating performance,
limited business profile and appropriate enterprise risk management.

The company's risk-adjusted capitalization, as measured by Best's
Capital Adequacy Ratio (BCAR), is supported by low underwriting leverage
and capital injections received from its parent company, Citystate
Capital Asia Pte. Ltd.

Offsetting rating factors include EQI's limited business profile and
elevated combined ratio, which remains above industry peers. As a small
player in the highly competitive Singapore market, EQI is undertaking
various initiatives to establish a profitable niche. However, these
initiatives are subject to execution risk and EQI's combined ratio is
expected to remain elevated during this transition period.

Positive rating actions are unlikely in the near term. Negative rating
actions may occur from a deterioration in operating performance or
business profile.

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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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