MICO gets high rating

The A.M. Best Co. has affirmed the financial strength rating (FSR) of B++ (Very Good) and assigned an issuer credit rating (ICR) of "BBB" to Malayan Insurance Co. Inc. (MICO) (Philippines). The outlook on both ratings is stable.

A.M. Best Co., established in 1899, is the world’s oldest and most authoritative insurance rating and information source.

The ratings reflect MICO’s consistent market leadership, strong risk-adjusted capitalization, and stable stream of investment income. The ratings continue to recognize the company’s extensive reinsurance arrangements.

"MICO established a solid position within the Philippines’ non-life insurance market as a result of its 75 years of operating history. It maintained market leadership in terms of gross premiums written for the last 35 years," it said in a press statement.

Gross premiums grew by 20 percent to P3.9 billion ($70 million) in 2004 from P3.3 billion ($59 million) in 2003. MICO is the flagship insurance company of Yuchengco Group of Companies (YGC), which is a financial conglomerate in the Philippines.

MICO emerged as the leading company in terms of premiums earned and paid up capital. It generated P1.63 billion ($29.20 million) in premiums earned in 2004, a 52 percent increase over 2003’s figure of P1.07 billion ($19.16 million).