HONG KONG–(BUSINESS WIRE)–AM Best has commented that the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Mandal Daatgal JSC (Mandal) (Mongolia) remain unchanged.
This comment follows the recent uncertainty surrounding the credit profile of Mandal’s major treaty and facultative reinsurers. Based on AM Best’s exchange with Mandal’s management, these reinsurers have a relatively small share in Mandal’s outward facultative agreements, and the chance of triggering the treaty is relatively remote. Thus, the concerned balance sheet exposure relative to the company’s capital and surplus is considered limited.
AM Best will monitor any material change in Mandal’s Credit Rating (rating) fundamentals arising from future events, such as heightened reinsurance receivable and uncollectable following future major loss events.
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