Extremely strong capital adequacy relative to its risk profile. Good liquidity profile with satisfactory cash level and no immediate cash outflow needs. Small capital size, which counterbalances its extremely strong capital adequacy. Gradual increase in commercial fire business exposure that possess higher underwriting volatility. 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
