KUALA LUMPUR, Nov 6 -- AM Best has revised the Singapore Reinsurance Corporation Limited (Singapore Re) Singapore outlook to negative from stable.
According to a statement, the revision of the outlooks to negative reflects increasing pressure on Singapore Re’s business profile assessment.
Whilst long-standing relationships with a small number of local cedants, some of which have ownership stakes in Singapore Re, have provided the company with access to profitable business, AM Best views the concentration and reliance on these key cedants as high.
Singapore Re’s expansion across the regional reinsurance market over recent years has also generated increased volatility in underwriting performance amid generally competitive market conditions and increased exposure to natural catastrophe activity.
In the same statement, AM Best also affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of the insurance company.
The ratings reflect Singapore Re’s balance sheet strength, which AM Best described as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The company’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.
AM Best views the company’s ERM approach as appropriate given the current size and complexity of its operations. More details on the ratings at www.ambest.com
-- BERNAMA
No comments:
Post a Comment