Kyobo Life Insurance has been acquiring industry-leading credit ratings from global credit rating agencies one after another. It earned A1 and A+ ratings from the world's top credit rating agencies, Moody's Investors Service and Fitch Ratings, respectively, and received high marks for its financial stability and risk management capabilities.
Kyobo Life Insurance announced on Nov. 14 that it has recently acquired an A1 (Stable) credit rating from Moody's. It has been maintaining the A1 rating for five consecutive years since it was the first in the life insurance industry in 2015.
The evaluation is an "insurance financial strength rating (IFSR)" that comprehensively considers the profitability, financial health and risk management abilities of insurance companies.
The A1 rating is the fifth-highest among the total of 21 credit ratings, with global banks Goldman Sachs and Morgan Stanley being named. In Korea, major domestic commercial banks (such as Woori, KEB Hana and NH Nonghyup Bank) that have government guarantees for payment are among the A1 grades.
The A1 rating reflects Kyobo Life Insurance's excellent business health, solid capital adequacy and low financial leverage ratio, Moody's said in a report, adding that the company's excellent operating power and diversified business channels based on its high market position are also strong.
In addition, it evaluated the rating outlook for Kyobo Life Insurance as "stable," saying it is expected to maintain its financial health in the future.
Fitch also recently gave Kyobo Life Insurance a "A+(stable)" credit rating, the highest level in the industry. It is the seventh consecutive year for a Korean life insurer to receive an "A+" rating in 2013.
"The fact that we obtained high credit ratings from overseas credit appraisal companies is internationally recognized for our stable financial structure and ability to manage risks," a Kyobo Life Insurance official said. "We will continue to generate profits by actively responding to markets and finding new investment destinations, as well as by engaging in business activities based on principle."
