A.M. Best Affirms Credit Ratings of Singapore Reinsurance Corporation Limited
SINGAPORE--(BUSINESS WIRE)--Sep 21, 2018--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Singapore Reinsurance Corporation Limited (Singapore Re) (Singapore). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Singapore Re’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by low underwriting leverage and a balance sheet composed of assets of good quality. Singapore Re’s operating performance is supported by a steady stream of income derived from its investment portfolio, which is large compared to its earned premium base. This has provided some earnings buffer against volatility from its underwriting activities. Singapore Re’s business profile benefits from established business relationships with key cedents, which has provided some insulation against weak market conditions.
Offsetting rating factors include Singapore Re’s company’s modest size. As a small player competing for local and regional business, Singapore Re faces material competition from larger international peers and expense ratio pressures, as regulatory hurdles and competitive pressures continue to increase.
Positive rating actions are unlikely in the near term. Negative rating actions may occur from a deterioration in operating performance or business profile.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: A.M. Best
+65 6303 5017
Chi Yeung Lok
+65 6303 5018
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
KEYWORD: EUROPE ASIA PACIFIC SINGAPORE
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 09/21/2018 12:11 PM/DISC: 09/21/2018 12:11 PM