KUALA LUMPUR, May 4 -- AM Best has affirmed the Financial Strength Rating of B+ (good) and the Long-Term Issuer Credit Rating of ‘bbb-’ of Asian Reinsurance Corporation (Asian Re) Thailand, resulting in stable outlook.
The ratings reflect Asian Re’s balance sheet strength, which AM Best described as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).
According to a statement, Asian Re’s balance sheet strength is underpinned by risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is expected to remain at the strongest level over the medium term.
Capital adequacy is expected to remain supported by the company’s low underwriting leverage despite recent and planned underwriting growth, as well as from its investment portfolio comprising principally cash and short-term deposits.
AM Best views Asian Re’s business profile to be limited, as the company faces challenges in rebuilding its presence in the regional reinsurance market following catastrophe events in 2011 and 2012, which led to a need to recapitalise the company.
AM Best considers Asian Re’s ERM approach to be appropriate given the size and complexity of its current operations. More details at www.ambest.com
-- BERNAMA
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