RAM Ratings affirms Visionary Insurance’s LECA rating

Published on 22 Mar 2024.

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). It is part of Sinoasia Alliance Group Limited (Sinoasia or the Group), a specialist insurance broker with captive management, technical pricing and underwriting experience.

The rating is supported by Visionary’s low risk exposures and strong capitalisation. Concentration risks, a limited track record and earnings volatility temper the rating. Business and operational synergies with its Hong Kong-based parent moderate the constraints of a presently limited franchise.

Visionary’s GWP continues to be fully linked to structured reinsurance, where it does not retain underwriting exposure. With larger and more diverse portfolios of policies under administration, GWP was a stronger USD9.3 mil in FY23 (FY22: USD3.5 mil). With reserving needs, FY23 pre-tax profits narrowed to USD0.23 mil (FY22: USD0.30 mil).

Under Labuan FSA’s newly implemented Insurance Capital Adequacy Ratio Framework (ICAF), Visionary reports a capital ratio exceeding 700% as at end-2023. Liquidity is supported by USD100 mil of capital funds deposited in a new and unrated offshore investment bank, which financial strength we are unable to verify. We expect the Insurer to mitigate future underwriting risks with appropriate reinsurance.

For context and understanding of the contents in this media release, we advise reviewing the LECA report, which can be obtained from the rated entity. 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. The rating could be updated or changed upon the availability of material information, or 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
joanne@ram.com.my

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.

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RAM Ratings affirms Visionary Insurance’s LECA rating