S&P Global Ratings has affirmed that Income Insurance is expected to sustain a solid market position in Singapore, despite Allianz’s recent exit from the market. According to S&P, the insurer’s capitalization will remain in line with its risk profile and should continue to reflect its robust standing in the local market.
The ratings agency highlighted that Income Insurance’s management is likely to focus on strengthening its core domestic operations while also seeking growth opportunities abroad through expanding its insurance-related services.
However, S&P cautioned that the insurer’s financial stability could face challenges due to several factors. These include market volatility, exposure to high-risk assets, and uncertainties surrounding forthcoming accounting changes and the company’s ongoing business expansion efforts. Such elements could potentially impact the insurer’s earnings and overall capitalization.
Despite these challenges, S&P expressed confidence that Income Insurance will maintain a strong business franchise in the domestic insurance market over the next two years.
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