Bangkok Insurance is projected to uphold a stable outlook through 2026, according to S&P Global Ratings. The insurer is anticipated to maintain a combined ratio between 85% and 90%, reflecting its robust operational performance.
The ratings agency also highlighted that Bangkok Insurance’s capital adequacy is expected to remain comfortably above the required threshold, with a redundancy level at 99.95% confidence through 2026. This stability is bolstered by the company’s leading position in the Thai property and casualty insurance sector, along with its prudent risk management strategies.
While the recalibration of capital charges has resulted in increased capital requirements, the benefits of risk diversification have been duly acknowledged in the agency’s assessment. The stable outlook indicates that any potential rating downgrades could arise from weakened capitalization, increased catastrophe risks, or a downturn in Thailand’s industry and country risk evaluations.
Conversely, an upgrade in the insurer’s rating is unlikely in the next two years unless there is a significant enhancement in its financial risk profile. Despite substantial equity investments, Bangkok Insurance is expected to achieve an underwriting profit and maintain exceptional liquidity, ensuring no constraints in fulfilling its financial obligations.
