HONG KONG--(BUSINESS WIRE)--Second graph, first sentence of release should read: Peak Re is licensed in Hong Kong as a general reinsurer with a focus on the Asia Pacific region (sted: Peak Re is provisionally licensed in Hong Kong as a general reinsurer with a focus on the Asia Pacific region).
The corrected release reads:
A.M. BEST ASSIGNS RATINGS TO PEAK REINSURANCE COMPANY LIMITED
A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and issuer credit rating of "a-" to Peak Reinsurance Company Limited. (Peak Re) (Hong Kong). The outlook assigned to both ratings is stable.
Peak Re is licensed in Hong Kong as a general reinsurer with a focus on the Asia Pacific region. With initial capital of USD 550 million, the company is 85.1% owned by Fosun International Limited (Fosun) and 14.9% owned by International Financial Corporation. Fosun is a Hong Kong listed conglomerate with operations and investments in pharmaceuticals and healthcare, property, steel, mining, retail, services and insurance businesses in Mainland China.
The ratings of Peak Re are based on its sound risk-adjusted capitalization and its prudent business plan. The assumptions used in the company’s business plan are in line with the average of regional reinsurers. Peak Re’s net underwriting leverage is anticipated to remain below one times over the next five years.
Partially offsetting these positive rating factors are the start-up nature of Peak Re and the challenge it faces to execute its business plan under the increasing competition from both the established reinsurers as well as other new entries within the region. Moreover, Peak Re could potentially be exposed to a frequency of events that will pressure its capital strength during its early years of operation.
Peak Re is well positioned at its assigned ratings over the near term. Factors that may trigger negative rating actions include significant adverse deviation of its risk-adjusted capital relative to its business plan and failure to execute its business plan or meet its planned underwriting performance.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Understanding Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; “Rating New Company Formations”; “Evaluating Non-Insurance Ultimate Parents”; and “Risk Management and the Rating Process for Insurance Companies.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.