Prudential Life Achieves 'AAA' Insurance Payment Ability Rating for 2 Consecutive Years

Korea Credit Rating Insurance Payment Ability Evaluation
Achieves Highest Grade

[Asia Economy Reporter Ki Ha-young] Prudential Life Insurance announced on the 10th that it has received the highest rating of 'AAA' for insurance payment capability evaluation from Korea Credit Rating Agency for the second consecutive year.

The AAA rating signifies the highest level of long-term insurance payment capability and stability to the extent that it is not affected by environmental deterioration. Korea Credit Rating Agency highly evaluated Prudential Life Insurance's ▲capital adequacy ▲asset soundness ▲profitability. Additionally, from a mid-term perspective, Prudential Life Insurance's future credit rating is expected to be 'Stable.'

Prudential Life Insurance showed an RBC (Risk-Based Capital) ratio and qualitative composition of capital that are very superior compared to the industry. The RBC ratio, which indicates whether an insurer can pay insurance claims to customers on time, is at the highest level in the industry, and it is the only life insurance company to maintain over 400% for three consecutive years, leading to excellent creditworthiness.

The proportion of safe assets, which refers to cash assets, government bonds, and special bonds with low credit risk, is significantly higher for Prudential Life Insurance (88.5%) compared to the industry average (49.3%), which also received positive evaluation. Furthermore, Prudential Life Insurance has secured an excellent profit structure by composing a portfolio centered on protection insurance and variable insurance, and its five-year average return on assets (ROA: 0.85%) is higher than the industry average (0.43%).

Korea Credit Rating Agency, which conducted this evaluation, predicted that Prudential Life Insurance's market position will rise as protection insurance through the agent channel continues. Moreover, by holding an insurance portfolio mainly composed of whole life insurance with long liability duration and mitigating interest rate risk mainly through long-term government bonds, Prudential Life Insurance is expected to maintain high profitability.

A Prudential Life Insurance official said, "We have recorded stable growth by focusing on selling whole life insurance through insurance experts called 'Life Planners,'" adding, "We plan to further strengthen our market dominance by building the Life Planner channel into the industry's best premium model."

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