Published on 10 Feb 2023.
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.
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