[RATING ACTION] Fitch affirms Fidelidade Macau’s IFS Rating at ‘A’; Outlook Stable

Macao, November 22, 2024 – The American financial rating agency Fitch Ratings (“Fitch”) announced that it has affirmed Fidelidade Macau – Insurance Company Limited’s Insurer Financial Strength (IFS) Rating at ‘A’ (Strong) with Stable Outlook, one of the highest ratings in the Macao Special Administrative Region.

To obtain this solid rating, Fitch highlighted several key drivers: the Company’s strategic importance to its parent, Fidelidade – Companhia de Seguros, S.A. (Fidelidade, IFS Rating: A+/Stable), reflected on the applied one-notch uplift to Fidelidade Macau’s standalone credit quality to derive an IFS Rating of ‘A’; the ‘Strong Capital Adequacy’, with a statutory solvency ratio of 693% as at September 2024, well in excess of the regulatory minimum requirement of 150%, reaffirming the importance of such capital position in next few years, in consideration of the Macao’s new risk-based capital regime to be implemented in the medium term; ‘Sound Profitability’ with 9% return on equity (ROE) by end-2023 and a combined ratio averaging 62% during 2021-2023, in direct relation with the increase in projects related to construction.

Commenting on this milestone, Mr. Paulo Barbosa, Chief Executive Officer of Fidelidade Macau, said:

“We are pleased with this affirmation of our Insurer Financial Strength rating at ‘A’ with a Stable Outlook. This rating reflects our robust financial position, prudent risk management practices, and our commitment to maintaining strong capital levels. It underscores the confidence that our stakeholders can have in our ability to meet our long-term obligations. We will continue to focus on delivering value to our policyholders and shareholders while navigating the evolving market landscape.”

Mr. Ivan Cheung, Executive Director also took the opportunity to highlight this upgrade:

“This rating is a testament to our solid financial foundation, effective risk management strategies, and our unwavering commitment to our policyholders. It reflects the trust and confidence that our stakeholders place in us. Moving forward, we will continue to focus on maintaining our financial strength and delivering exceptional value to our customers and shareholders.”

To find out more about this assignment you can access Fitch’s Announcement here.