A.M. Best Affirms Credit Ratings of ACR Capital Holdings Pte. Ltd. and Its Associated Companies

SINGAPORE--()--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Asia Capital Reinsurance Group Pte. Ltd. (Asia Capital Re) (Singapore) and its subsidiary, Asia Capital Reinsurance Malaysia Sdn. Bhd (ACRM) (Malaysia). A.M. Best also has affirmed the Long-Term ICR of “bbb-” of the holding company, ACR Capital Holdings Pte. Ltd. (ACR Holdings) (Singapore). The outlook of these Credit Ratings (ratings) is negative.

Asia Capital Re’s ratings reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Asia Capital Re’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains solid and is supported by low underwriting leverage, as well as good asset quality.

ACRM’s ratings reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM, as well as the support it receives from its parent, Asia Capital Re. ACRM’s balance sheet strength remains supported by significant quota-share retrocession to its parent. Both companies also share certain services and infrastructure.

The negative outlooks reflect Asia Capital Re’s record of varying and unprofitable underwriting performance. Management has taken remedial actions to improve its underwriting margins, and unaudited interim results as of September 2017 showed an underwriting profit. Nevertheless, A.M. Best remains concerned about execution risk and it remains to be seen if the improving performance can be maintained.

ACR Holdings’ Long-Term ICR reflects the standard notching from Asia Capital Re, its primary operating entity.

Further negative actions regarding Asia Capital Re could arise from deterioration in operating performance. A revision to a stable outlook could occur if Asia Capital Re achieves sustained underwriting profitability while meeting its planned premium targets.

Further negative actions regarding ACRM could arise if the company’s business profile weakens or if the support provided by Asia Capital Re diminishes.

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 the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Faith Tan, +65 6303 5017
Financial Analyst
faith.tan@ambest.com
or
Wesley Chia, +65 6303 5018
Financial Analyst
wesley.chia@ambest.com
or
Chi-Yeung Lok, +65 6303 5016
Director, Analytics
chi-yeung.lok@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Faith Tan, +65 6303 5017
Financial Analyst
faith.tan@ambest.com
or
Wesley Chia, +65 6303 5018
Financial Analyst
wesley.chia@ambest.com
or
Chi-Yeung Lok, +65 6303 5016
Director, Analytics
chi-yeung.lok@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com