AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable. CTPIS is a wholly owned subsidiary of
The ratings reflect CTPIS' balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). In addition, CTPIS benefits from a rating enhancement that reflects its ownership by the TPG group.
CTPIS' risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), declined to the strong level at year-end 2022; however, AM Best expects it to be sustained at the very strong to strongest level over the medium term. The company's capital and surplus decreased by 48% to
AM Best views the company's operating performance as adequate with its non-life operations having generated robust profits over the past five years, although the company's pre-tax operating income has been weakened by elevated start-up costs and technical provisions associated with initiating life insurance sales in 2018. Investment income has historically been a positive driver of CTPIS' overall earnings; however, the company recorded a pre-tax loss in 2022 due to material unrealised losses suffered on its fixed-income portfolio. As of
AM Best views CTPIS' business profile as neutral. The company is a medium size insurer in
AM Best considers CTPIS' ERM approach to be appropriate given the size and complexity of its current operations. The company's ERM framework and capabilities have benefited over a number of years from technical support and guidance provided by the TPG group. Nonetheless, AM Best views CTPIS' developing life operations as presenting heightened execution risk over the medium term.
Despite CTPIS' operations accounting for a relatively small portion of the TPG group's revenues and earnings, it is considered important to the group in terms of accessing the
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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