Summary: Union Insurance Co. Ltd.

The ratings reflect Union Insurance Co. Ltd.'s extremely strong capital adequacy relative to its risk profile, which provides a good buffer for potential losses. In addition, the ratings reflect the company's intermediate level of investment risk appetite and good liquidity and cash flow. Counterbalancing these strengths are the insurer's small scale and small capital base by international standards. The stable outlook reflects our expectation that Union Insurance can maintain its capital adequacy at an extremely strong level relative to its risk profile over the next one to two years. The insurer is likely to uphold its underwriting performance similar to the industry average over the next one to two years, given the insurer's focus on more profitable personal line insurance

...The ratings reflect Union Insurance Co. Ltd.'s extremely strong capital adequacy relative to its risk profile, which provides a good buffer for potential losses. In addition, the ratings reflect the company's intermediate level of investment risk appetite and good liquidity and cash flow. Counterbalancing these strengths are the insurer's small scale and small capital base by international standards. Outlook The stable outlook reflects our expectation that Union Insurance can maintain its capital adequacy at an extremely strong level relative to its risk profile over the next one to two years. The insurer is likely to uphold its underwriting performance similar to the industry average over the next one to two years, given the insurer's focus on more profitable personal line insurance as well as its development in commercial line insurance with adequate underwriting skills. We expect Union Insurance to maintain a moderate level of investment risk appetite with controlled exposures to equities...

Summary