AM Best confirms the credit ratings of Dhipaya Insurance Public Company Limited

SINGAPORE, June 24, 2022— (BUSINESS TEL) –AM Best reaffirmed the financial strength rating of A- (excellent) and the long-term credit rating of the issuer of “a-” (excellent) of Dhipaya Insurance Public Company Limited (Dhipaya) (Thailand). The outlook for these credit ratings (ratings) is stable.

The ratings reflect the strength of Dhipaya’s balance sheet, which AM Best as strong, as well as its strong operating results, neutral business profile and proper corporate risk management (ERM).

Dhipaya’s risk-adjusted capitalization remained at its highest level in 2021, as measured by Best’s capital adequacy ratio (BCAR). The company’s regulatory capital adequacy ratio also continued to exceed the regulatory minimum requirement with a good margin for several years. However, Dhipaya remains subject to moderate investment risk, given its significant distribution to equities and mutual funds. In addition, the company relies heavily on reinsurance to maintain very high risks and manage catastrophe exposure, although this is mitigated in part by the high credit quality of the company’s reinsurance counterparties.

The company has experience with strong operating results with a five-year average combined ratio and operating ratio of 80% and 70% respectively (2017-2021). While Dhipaya continued to generate strong insurance results in personal accidents, fires and all business risk lines, the company registered a contraction in total technical profit in 2021 as a result of adverse policy claims related to COVID-19. Although COVID-19 claims are expected to continue to affect the performance of Dhipaya’s takeover in the short term, the current composition of the company’s portfolio with less exposure to highly competitive business lines and a good revenue balance expects to alleviate these difficulties.

The company has established a strong presence in the non-life market in Thailand, ranking second with a market share of 11% in 2021 in terms of direct premiums written. In addition, Dhipaya occupies a dominant market position in several major segments such as personal accidents, fire and industrial risks. The company’s business profile also benefits from strong shareholder support through business recommendations and access to extensive distribution networks throughout the country.

AM Best considers Dhipaya’s risk management capabilities to be appropriate to the key risk profile. The company has developed a comprehensive ERM framework with appropriate tools for risk identification and monitoring.

Ratings are communicated to rated individuals prior to publication. Unless otherwise noted, ratings have not changed since this announcement.

This press release refers to the credit ratings that are published on the AM Best website. For all disclosure-related rating information and related disclosures, including details of the service responsible for issuing each of the individual ratings listed in this release, please see the AM Best website for the latest rating activities. For more information on the use and limitations of credit rating opinions, please see the Best Credit Rating Guide. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessment and AM Best Press Releases, please see the Guide to Proper Use of Best’s Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analysis provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Trung Tran
Senior Financial Analyst
+65 6303 5019
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Kanica Tucral
Senior Financial Analyst
+65 6303 5025
[email protected]

Jeff Mango
Managing Director,
Strategy and communications
+1 908 439 2200, ext. 5204
[email protected]

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