A.M. Best Assigns Ratings to Asia Capital Reinsurance Group Pte. Ltd.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) and an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a-" to Asia Capital 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. Group Pte. Ltd (ACR See riser card. ) (Singapore). The outlook on both ratings is stable. ACR will operate as a Singapore-based reinsurance company exclusively focused on Asian risk. The company will write both treaty business as well as facultative business and will be capitalized with 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. 565 million in common equity. The company will be a fully owned subsidiary of ACR Capital Holdings Pte. Ltd. whose investors include 3i, Khazanah Nasional Khazanah Nasional Berhad is the investment holding arm of the Government of Malaysia entrusted to hold and manage the commercial assets of the government and to undertake strategic investments. Berhad, affiliated investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company of Och Ziff Capital Management Group, Morgan Stanley Private Equity Asia, Credit Suisse Private Equity Asia and the Luxembourg Sicav "Worldwide Sicav". The ratings reflect ACR's solid capitalization, experienced management team and sound business plan. The assumptions used in the business plan do not deviate from the Asian market average, and the business plan anticipates a controlled rate of premium growth with underwriting leverage well below 1x. In determining the ratings, A.M. Best was concerned with ACR's existing infrastructure. Additionally, several key operational positions have yet to be filled. A.M. Best perceives these as risk factors that could be detrimental to ACR's ability to fully execute its current business plan. However, these concerns are not sufficient to preclude the assignment of an FSR of A- (Excellent). A.M. Best anticipates ACR will be challenged by increased competition from the established reinsurance companies in Asia as they have strengthened their capitalization in recent years. The additional capacity brought to the market with no recent major reinsurance losses in Asia could dampen expected returns if pricing of reinsurance coverage fails to meet anticipated levels. Furthermore, the ability of ACR to effectively build and retain market acceptance will only be proven over time. Accordingly, A.M. Best will closely monitor the quarterly performance of ACR against its stated business plan, and any material negative deviations in terms of management, earnings, capitalization or risk profile could result in downward pressure on the assigned 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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