Press Release

Your Partner for Growth and Security

Date: 16/08/2013
Venue: RICB, Head Office, Thimphu
A.M. Best Assigns Ratings to Royal Insurance Corporation of Bhutan Limited

The Royal Insurance Corporation of Bhutan Limited has been assigned a Financial Strength Rating of B+ and an Issuer Credit rating of “bbb-”by A.M. Best Asia-Pacific Limited, raising yet another milestone in the history of RICB.

A.M. Best Asia-Pacific Limited is a subsidiary of A.M. Best Company. A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.

The rating is an important barometer for stakeholders to gauge the RICB’s efficiency, financial security and overall credibility.

The ratings reflect RICB’s adequate risk-adjusted capitalization, favorable operating performance and investment income as well as its dominating market position in Bhutan. Above all, the rating reflects RICB’s human resource capacity and other competencies to engage in business in the global insurance market.

As the Credit ratings are assigned from an in-depth evaluation of a company’s balance sheet strength, operating performance and business profile, it means that RICB has the ability to “Pay Claims” and fulfills all financial obligations. The credibility and the quality of an insurance company are assessed based on the capacity to settle the claims on time and adequately, rather than purely based on the price of the risk (premium amount).

The rating also indicates that RICB has been able to achieve strong operating income over the past five years, which is mainly attributable to its favorable investment income. At the same time, RICB has managed to maintain its combined ratio at a five-year average of 75%. Both profitable underwriting and investment results have contributed to the growth in RICB’s capital base, which was over Nu. 1.5 billion (USD 27 million) at year-end 2012 and Nu. 1.7 billion as of date.

RICB was established on 7th January 1975 under the Royal Charter of the Fourth Druk Gyalpo, His Majesty Jigme Singye Wangchuck. Today RICB has 25 offices across the country with the head office in Thimphu and the Regional Office in Phuentsholing. As an insurance provider, RICB plays a significant role in the financial sector and in socio-economic development of the country. RICB provides multifaceted financial services including social security services to the society through its various schemes/products.

A.M. Best Assigns Ratings to Royal Insurance Corporation of Bhutan Limited

Royal Insurance Corporation of Bhutan Limited
Telephone #:- 02-325725/321037/322426/321161/323487/324282/321036
Toll free No.:- 181 & 151
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