Singapore: AM Best upgrades Singapore Re's ratings on appeal
Source: Asia Insurance Review | Sep 2022
AM Best has upgraded the financial strength rating to A (excellent) from A- (excellent) and the long-term Issuer credit rating of “a” (excellent) from “a-” (excellent) of Singapore Reinsurance Corporation (Singapore Re). The outlook of these credit ratings is ‘stable’.
This latest rating action is the result of an accepted appeal from Singapore Re, says AM Best.
The agency says that the ratings reflect Singapore Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). In addition, the ratings factor in rating enhancement from the company’s ultimate parent, Fairfax Financial Holdings.
The ratings upgrade reflects AM Best’s assessment of increased rating enhancement from the Fairfax group. The rating enhancement factors in explicit support in the form of a parental guarantee and implicit support from the group, including corporate governance, as well as access to shared resources and services across various business functions.
Despite Singapore Re’s operations accounting for a small component of the Fairfax group’s consolidated revenue and earnings, the company is considered important to the group’s international expansion plans and provides access to local and regional business. A