Standard Insurance retains high rating
International rating agency Global Credit Ratings (GCR) has affirmed the national scale claims paying ability rating assigned to Standard Insurance Inc. of A, with the rating outlook accorded as positive from stable.
A highly capitalized nonlife insurer, Standard Insurance also improved its international scale rating of BB with a stable outlook for US dollardenominated claims paying ability, according to GCR.
In a credit rating released last month, GCR cited Standard Insurance for its strong and improving capitalization and superior reinsurance facilities from some of the world’s best, highest-rated insurers that protect its motor and property portfolios from catastrophes and large single loss events.
The international scale rating is impacted by the insurer’s exposure to the Philippines’ sovereign rating, given that the insurer’s assets are locally domiciled, and revenue is locally derived.
The positive outlook reflects the potential for upward rating movement should Standard Insurance’s earnings capacity register within a strong range, while maintaining very strong risk adjusted capitalization and strong liquidity metrics.
Over and above the numerical credit profile results from the insurance company’s last year’s operations, a large part of the evaluation process was based on how it is coping and rising amid these pandemic challenges, GCR noted.
The non-life insurance management’s ability to sustain the current earnings trend in the face of the vagaries of COVID-19 represents a key rating consideration over the rating horizon, according to GCR.
The leading motorcar insurer also maintains its strength as it fully operates under the ‘new normal’. The company has always been prepared for catastrophic events so when the pandemic happened, it quickly and smoothly shifted to remote working arrangements.
Likewise, Standard Insurance’s in- house developed systems for all its processes are all digital and integrated online. More importantly, all its systems have been in the cloud allowing flexibility of working on the whole cycle of insurance operations.