AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of 'a-' of
Per the disclosure, CMI entered into a business transfer agreement with CMBWLI, under which CMI will transfer its general insurance business (including assets and liabilities related to the business) to CMBWLI, which will in turn issue 9,856,066 of its shares to CMI. As a result, CMI will directly own 25.37% of the enlarged share capital of CMBWLI, and CMB will indirectly hold 74.63% of the shares in CMBWLI. The business acquisition and new issue of shares are subject to approval by the
In addition, CMIH entered into a share subscription agreement with CMBWLI on
AM Best currently assesses CMI's balance sheet strength as very strong, combined with adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the parental support from CMG, including capital support, brand recognition, investment management and risk oversight. AM Best views CMI's credit fundamentals remain unchanged as the company continues to operate on a going concern basis.
Per the disclosure, upon completion of the aforementioned business acquisition and distribution to CMIH, CMI will apply to the IA for withdrawal of authorization to carry on general insurance business. Upon approval from the regulator, AM Best will administratively remove the Best's Credit Ratings on CMI.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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