A.M. Best Affirms Ratings of Singapore Reinsurance Corporation Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Singapore Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Corporation Limited (Singapore Re) (Singapore). The outlook for both ratings is stable. The ratings reflect the company's strong capitalization, improvement in underwriting performance and establishment of a new business model. Singapore Re's strong capitalization is demonstrated by its conservative local capital adequacy ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. and net underwriting leverage ratio, which stood at 333% and 0.4 times, respectively, for the fiscal year ended 2004. The net underwriting leverage ratio is expected to decrease further in fiscal year 2005, given that the net premium written declined by over 30% for the first nine months in fiscal year 2005. The company's outstanding Best's Capital Adequacy Ratio, which measures capitalization on a risk-adjusted basis, further demonstrates the substantial cushion that exists. After experiencing an underwriting loss of SGD SGD In currencies, this is the abbreviation for the Singapore Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.9 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.1 million) in fiscal year 2003, Singapore Re recorded an underwriting profit Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. of SGD 61 thousand (USD 37 thousand) in fiscal year 2004 due to lower net incurred losses. The profitable underwriting trend continues in fiscal year 2005, which has further increased to SGD 1.6 million (USD 1 million) for the first nine months in fiscal year 2005. After the termination of the Voluntary Cession The act of relinquishing one's right. A surrender, relinquishment, or assignment of territory by one state or government to another. The territory of a foreign government gained by the transfer of sovereignty. CESSION, contracts. Market Agreement at year-end 2004, Singapore Re actively canvassed the direct insurance companies in Singapore This is a list of certified insurance companies in Singapore. Insurance Brokers
General insurers
Offsetting factors include lack of geographical diversification and difficult environment obtaining greater retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. support for proportional business. Singapore Re generates most of its business from Singapore. As a counter measure to the termination of Voluntary Cession, the company is now expanding its business in selected overseas markets, particularly in China and India. Considering the absolute capital size of Singapore Re, it will be a challenge for the company to generate overseas business that is as profitable as domestic business. For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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