KUALA LUMPUR, Oct 29 (-- The credit ratings outlook of Singapore Reinsurance Corporation Limited (Singapore Re) Singapore is stable, says AM Best.
This follows the agency’s affirmation, giving the Financial Strength Rating of A- (excellent) and Long-Term Issuer Credit Rating of ‘a-’ of the company.
The ratings reflect Singapore Re’s balance sheet strength, which AM Best categorised as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Singapore Re’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that remains at the strongest level, as measured by Best’s Capital Adequacy Ratio.
Despite an elevated dividend payout ratio over the past five years, retained earnings have remained sufficient to support new business growth.
Other balance sheet factors include the company’s moderate risk investment strategy, and high usage of and dependence on retrocession to manage exposure to catastrophe events, accumulations and large single risks.
AM Best views Singapore Re’s operating performance to be adequate, with the company having reported a five-year average return on equity ratio of 4.9 per cent (2014-2018).
The agency also views the company’s business profile as neutral. Singapore Re is a regional non-life reinsurer, with a modest-sized gross written premium base of SGD 208 million (US$193 million) last year. (US$1 = RM4.18)
-- BERNAMA
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