SKorean non-life insurance sector outlook seen stable - Moody's |
|
|
|
Published
:
Wed, 14 Nov 2007 04:32
|
MUMBAI (Thomson Financial) - Moody's Investors Service said it maintains a stable outlook on the Korean non-life insurance industry, reflecting its view that -- over the next 12-18 months -- the number of rating actions is likely to be moderate.Moreover, such rating actions will probably be driven more by the particular characteristics of individual firms rather than sector-wide conditions, Moody's said in a report on the industry's outlook.'Specifically, the stable outlook reflects the stability evident in market dynamics for non-life insurers; good growth prospects; relatively low catastrophe exposures; and low use of financial leverage,' said Sally Yim, the report's author.However, Yim added that these positive factors are balanced out by relatively risky investment portfolios and intense competition, especially in motor insurance, which exerts negative pressures on profitability.The Korean non-life sector is highly concentrated with the top 5 insurers accounting for over 75 pct of the overall market. The five are Samsung Marine & Fire Insurance, Hyundai Marine & Fire Insurance, Dongbu Insurance, LIG Insurance and Meritz Fire & Marine Insurance.As the issue of economies of scale is such an important competitive factor, Moody's expects more M&A activities by banks, foreign insurers and among smaller insurers over the next 12-18 months.TFN.newsdesk@thomson.comjroCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
Print this Story
Valley Forge Life Insurance's IFSR affirmed at 'Aa2' following merger - Moody's 