AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Dhipaya Insurance Public Company Limited (Dhipaya) (Thailand). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Dhipaya’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

Dhipaya’s balance sheet strength assessment is viewed as strong, underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). The company benefits from strong financial flexibility as part of Dhipaya Group Holdings Public Company Limited (Dhipaya Group), which is a listed insurance holding company with access to capital markets. The company has a moderate risk investment strategy, given its notable allocation to equities and mutual funds. In addition, the company has a high reliance on reinsurance, although this is mitigated partially by the typically high credit quality of its reinsurance counterparties. The balance sheet strength assessment also factors in a neutral holding company impact arising from its ultimate ownership by Dhipaya Group.

Dhipaya’s operating performance is assessed as strong, with a five-year average return-on-equity ratio of 19.4% and combined ratio of 86.0% (2020-2024). In 2024, the company’s underwriting performance remained robust, supported by good loss experience in its miscellaneous and fire insurance, and favourable reinsurance commission income despite flood losses and higher claims experience in personal accident and health insurance. In addition, disciplined underwriting and pricing strategies are expected to support prospective performance. Dhipaya’s investment income, which comprises interest and dividend income, continues to remain supportive of overall earnings.

AM Best assesses Dhipaya’s business profile as neutral. The company has a strong presence in Thailand’s non-life market, ranking second with a market share of 11.2% in 2024, based on direct premium written. Dhipaya holds a dominant market position in several major segments, including fire insurance. The company’s business profile also benefits from its strong shareholder support through business referrals and access to extensive countrywide distribution networks.

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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