The ratings on The Asia Insurance Co. Ltd. reflect the company's strong financial profile, characterized by strong capitalization relative to the risks underwritten, consistent operating profitability, conservative reserving practices, and strong liquidity position. The company's core status within the Asia General Holding Company Group and its market position as a major general insurer in Singapore also underpin the ratings. In addition, the company's technical performance is improving, as earlier rehabilitative measures adopted are bearing fruit. These strengths are, however, moderated by Asia Insurance's above industry average exposure to the poorly performing motor business, although the company is committed to improving its portfolio mix. In addition, Asia Insurance operates in a competitive domestic market that is likely to pressure the financial
