SINGAPORE--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Singapore Reinsurance Corporation Limited (Singapore Re) (Singapore). The outlook for both ratings is stable.
The ratings acknowledge Singapore Re’s favorable operating performance and strong risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio.
Singapore Re’s risk-adjusted capitalization is supported by a low underwriting leverage and good asset quality. Stable and favorable investment returns, derived primarily from a portfolio of fixed-income securities, has been a major contributor to the company’s overall operating profitability.
Offsetting rating factors include a difficult operating landscape which hinders balanced contributions from its underwriting and investment portfolio. As a fairly small player in the reinsurance market, Singapore Re’s expense ratio is comparatively higher than its peers.
The company is well-positioned for its ratings.
Downward pressure to the ratings could occur from sustained negative earnings due to lower than expected investment results or a significant deterioration in its risk-adjusted capitalization.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.
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