AM Best affirmed the financial strength rating of B+ (good) and the issuer’s long-term credit rating of “bbb-” (good) from
The ratings reflect CISL’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, very limited business profile and adequate enterprise risk management (ERM). The ratings also take into account a neutral impact of the ultimate ownership of the company by humm group limited.
The company’s insurance business is currently in liquidation. In the fourth quarter of 2021, CISL communicated to its policyholders, informing them of the company’s decision to terminate all remaining card reimbursement insurance policies of
The strength of CISL’s balance sheet is underpinned by its risk-adjusted capitalization, which remains at the highest level, as measured by the Best’s Capital Adequacy Ratio (BCAR). Despite the company’s run-off status, AM Best expects the company to maintain its local regulatory solvency position at an appropriate level until it relinquishes its insurance license. In addition, the company’s investment strategy is expected to remain conservative, with invested assets consisting solely of cash and short-term deposits.
AM Best considers CISL’s operational performance to be adequate. The company reported a five-year average return on equity ratio of 34% (fiscal years 2017 to 2021), but with a moderate level of volatility over this period. Following the cancellation of all remaining insurance policies, CISL will cease to receive premium income, with short-term operating results expected to be driven by investment income, claims settlements and operating expenses .
AM Best considers CISL’s business profile to be very limited. The company is currently in run-off, having stopped writing new business from
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Yi Ding
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Source: AM Best
