A.M. Best Affirms Credit Ratings of Singapore Reinsurance Corporation Limited

Business Wire

SINGAPORE--(BUSINESS WIRE)-- 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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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A.M. Best

Faith Tan

Financial Analyst

+65 6303 5017

faith.tan@ambest.com

or

Chi Yeung Lok

Director, Analytics

+65 6303 5018

chi-yeung.lok@ambest.com

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com