HONG KONG, April 7 (Bernama-BUSINESS WIRE) — AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of CMB Wing Lung Insurance Company Limited (CMBWLI) (Hong Kong). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of CMBWLI were placed under review with positive implications in October 2022, following an announcement on 28 Sept. 2022, by China Merchants Bank Co., Ltd. (CMB) that CMBWLI would acquire the general insurance business of China Merchants Insurance Company Limited (CMI). According to the business transfer agreement, CMI would transfer its general insurance business (including assets and liabilities related to the business) to CMBWLI, which would then issue 9,856,066 of its shares to CMI. As a result, CMI would directly own 25.37% of CMBWLI’s enlarged share capital, and CMB would indirectly hold 74.63% of the shares of CMBWLI. The business transfer completed on 30 Dec. 2022. Subsequently, CMI will distribute all of its shares in CMBWLI to China Merchants Insurance Holdings (CMIH) and apply to the Hong Kong Insurance Authority (IA) to withdraw its authorisation to carry on general insurance business.
