Shinhan Life Insurance Achieves Highest Insurance Payment Ability Rating for 13 Consecutive Years

Shinhan Life announced on the 13th that it has received the highest rating (AAA) for 13 consecutive years in the insurance payment ability evaluation conducted by NICE Credit Rating. The rating outlook is also at a 'stable' level.

[Asia Economy Reporter Oh Hyung-gil] Shinhan Life announced on the 13th that it has obtained the highest rating (AAA) for the 13th consecutive year in the insurance payment ability evaluation conducted by NICE Credit Rating. The rating outlook is also at a 'stable' level.

This means that the long-term insurance payment ability is at the highest level, and there is almost no possibility of a decline in payment ability due to economic deterioration.

According to the evaluation report, Shinhan Life is expected to maintain stable profitability and excellent financial stability over the long term. Based on steady profit-generating power in the insurance business sector, it was evaluated that the high proportion of safe assets allows it to maintain excellent asset soundness and stable profitability even when market conditions fluctuate.

As of the end of December last year, the weighted non-performing asset ratio was 0.1%, and the fixed and below non-performing loan ratio was also 0.1%, indicating a very small scale of non-performing assets.

Although concerns have been raised about the rise in credit risk in the loan sector due to the slowdown in the domestic economic recovery, considering the long-term conservative asset management policy and sufficient write-off capacity for non-performing assets, it was judged that excellent asset soundness will be maintained in the future.

With a long-term surplus trend, retained earnings reached 1.7 trillion won as of the end of 2019, and it was evaluated that Shinhan Life possesses appropriate capital management capabilities, such as utilizing an adequate level of supplementary capital. Considering Shinhan Financial Group's excellent support capacity, it is expected that excellent capital adequacy will be maintained going forward.

A Shinhan Life official said, "The stable business foundation in the mid-to-upper tier of the life insurance industry and the appropriateness of the insurance portfolio are excellent," adding, "Based on long-standing business capabilities and excellent brand awareness, we are continuing stable external growth centered on the protection insurance sector."

This content was produced with the assistance of AI translation services.