RAM Ratings affirms Visionary Insurance’s LECA™ rating

Published on 10 Feb 2023.

Share Tweet Email

RAM Ratings has affirmed Visionary Insurance Company Limited’s (Visionary or the Insurer) “a” LECA™ rating, indicating an adequate capacity to meet policyholder obligations and financial commitments. Visionary is a licensed general (re)insurer domiciled in Labuan International Business and Financial Centre (Labuan IBFC).  

The rating is supported by the Insurer’s low risk exposures, alongside stronger capitalisation and financial flexibility. Visionary benefits from business and operational synergies with its Hong Kong-based parent Sinoasia Alliance Group Limited (Sinoasia or the Group), a specialist insurance broker with captive management, technical pricing and underwriting experience.

Concentration risks, a limited track record and earnings volatility temper the rating. In 9M FY22, Visionary recorded GWP of USD2.4 mil (FY21: USD8.5 mil) due to lower new business volume and portfolio runoffs. Currency translation gains lifted pre-tax profits to USD0.30 mil during the period (FY21: USD0.16 mil). 

Visionary received a USD100 mil capital injection via new ordinary shares in June 2022. Consequently, the Insurer’s surplus margin of solvency leapt to USD101 mil as at end-September 2022 (end-Dec 2021: USD0.3 mil), providing it the capacity to pursue growth. GWP is expected to progressively increase to USD63.5 mil by FY25. We expect the Insurer to mitigate significant future underwriting risks with appropriate reinsurance. 

LECA™ is an assessment service from RAM Rating Services Berhad for companies based in Labuan IBFC. LECA™ ratings are typically valid for up to 1 year after they are assigned. During this time, the assessment will be monitored by RAM Ratings. The rating could be updated or changed in the event of material developments or changes in circumstances. 

For information on LECA™ ratings assigned, visit https://analytics.ram.com.my/LECARating


Analytical contact
Joanne Kek
(603) 3385 2520


LECA™ ratings are not an opinion of a company’s specific financial obligations and terms thereof nor the legality and enforceability of the same, nor does it involve any audit by RAM Ratings. The information herein is strictly for information purposes and is not an offer, recommendation, solicitation or advice to buy or sell any investment product, securities or instruments, nor intended to be used as a recommendation to enter into, continue, suspend or terminate any contractual or financial obligation. Nothing in this publication constitutes accounting, legal, regulatory, tax, financial or other investment advice by RAM Ratings. 

RAM Ratings reserves the right to add, remove, withdraw, amend or revise, as it deems fit and without prior notice to users, any detail related to any company for whom it has produced a LECA™ rating and report. Although every reasonable care has been taken to ensure the accuracy, completeness and objectivity of the information contained herein, RAM Ratings makes no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability relating to any losses or damages (direct or indirect) howsoever suffered by any person arising from any reliance on the analysis, views or information contained in this publication.

Published by RAM Rating Services Berhad
© Copyright 2023 by RAM Rating Services Berhad