S&P: Singapore Insurers Crisis Hangover Hard to Shake.Business Editors SINGAPORE--(BUSINESS WIRE)--Standard & Poor's March 20, 2001--The Singapore insurance industry has made good progress in recovering from the Asian economic crisis, but the operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. remains very competitive and insurers are finding that full recovery might be elusive, Standard & Poor's said at the release of its Singapore Insurance Digest Digest: see Corpus Juris Civilis. (1) A compilation of all the traffic on a news group or mailing list. Digests can be daily or weekly. (2) Any compilation or summary. 2001. "Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and reserving standards remain under pressure for general insurers, with any decline in standards directly affecting the financial strength of companies," said Melissa Mackey, associate director, Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Ratings, Singapore. This is reflected in the rating downgrades of three general insurers in 2001. Ms. Mackey added that for life insurers, significant regulatory change will present strategic challenges. The financial strength of an insurer ultimately determines the ability, level of protection, returns, and service that an insurer can provide. The outlook for the general insurance sector remains negative, based on sluggish growth, fierce competition, meager mea·ger also mea·gre adj. 1. Deficient in quantity, fullness, or extent; scanty. 2. Deficient in richness, fertility, or vigor; feeble: the meager soil of an eroded plain. 3. increases in premium rates, and underwriting deficits. Underwriting profits 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. have been hard hit by the many years of declining premium rates, and the few rate increases implemented by insurers so far are unlikely to bring about improvement in companies' operating results until 2002. In the context of deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: underwriting results and variable investment returns, Standard & Poor's remains concerned about the adequacy of reserving levels for some classes. While not at a level that would threaten solvency The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one's debts. solvency n. , any deficiency would be a drain on future earnings, as claims inadequacy will need to be funded from this source. The outlook for the life sector is stable, as more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. underlying operating conditions prevail. Still, given the low interest rate environment and variations in investment earnings, life insurers are facing increasing pressure to lower crediting rates and expense levels. "The burden of historically high bonus rates may lead some insurers to assume increased risk in an attempt to boost investment earnings, which would expose these companies to potential volatility in capital strength," said Ms. Mackey. In its third Singapore insurance digest, Standard & Poor's profiles the financial strength of 21 of the industry's major participants and provides an update on market trends, and the outlook for its ratings on Singapore insurers. To obtain a copy of the Singapore Insurance Digest, contact Sheila Sheila is a common given name for a female, taken from the Gaelic name Síle/Sìle, which is believed to be a Gaelic form of Julia or Cecilia. Like "Cecil" or "Cecilia", the name means "Smart and Wise", from the Latin caecus. Ong on (65) 239-6320. The life and nonlife commentaries contained in the digest and complete details of ratings can be found on RatingsDirect, Standard & Poor's Web-based credit analysis system. The digest can also be found on Standard & Poor's Web site at www.standardandpoors.com. Select Resource Center, under Reference Tools, select Insurance. Below is the full list of Standard & Poor's interactive and public information ratings on insurance companies in Singapore This is a list of certified insurance companies in Singapore. Insurance Brokers
General insurers
RATINGS American Home Assurance Co. Singapore AAA American International Assurance Co. Ltd. AAA Asia Insurance Co. Ltd. A+ Asia Life Assurance Society Ltd. (The). A+ AXA Insurance Singapore Pte. Ltd. BBpi AXA Corporate Solutions Asia Pacific Pte. Ltd. AA Cosmic Insurance Corporation Ltd. BBpi Great Eastern Life Assurance Co. Ltd.. AA- Hartford Insurance Co. (Singapore) Ltd. (The) BBpi India International Ins. Pte. Ltd.. BBBpi Insurance Corporation of Singapore Ltd. BBBpi Keppel Insurance Pte. Ltd.. BBBpi Liberty Citystate Insurance Co. Ltd. BBBpi NTUC Income Insurance Cooperative Ltd.. AA Overseas Assurance Corp. Ltd.. BBBpi Prudential Assurance Co. Singapore (Pte.) Ltd.. Api SCOR Reinsurance Asia-Pacific. AA- Singapore Reinsurance Corp. Api Yasuda Fire and Marine Insurance Co. (Asia) Pte. Ltd. AA+ Note: All ratings are local currency counterparty Counterparty The other participant, including intermediaries, in a swap or contract. and insurer financial strength ratings. Standard & Poor's full coverage of the Singapore insurance sector is available to insurance industry professionals through RatingsDirect. A free trial may be requested by contacting Valerie Teo in Singapore on (65) 239-6327. ---CreditWire |
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