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A.M. Best Downgrades Ratings of Asian Reinsurance Corporation.

HONG KONG -- A.M. Best Co. has downgraded the financial strength rating (FSR) to B (Fair) from B+ (Good) and issuer credit rating (ICR) to "bb" from "bbb-" of Asian Reinsurance Corporation (Asian Re) (Thailand). Both ratings have been placed under review with developing implications.

The rating downgrades reflect the unresolved capitalization issues that have persisted for Asian Re due to continued reserve development stemming from the Thailand flooding losses and delay in execution of its capital infusion plan in a timely manner.

The capital issues were expected to be resolved by early November; however, administrative delay due to the intergovernmental ownership status of Asian Re has slowed this process. While this issue is expected to be resolved, the final amount and timing of the capital improvement plan remains uncertain at this time. A.M. Best will continue to actively monitor this situation and the financial condition of Asian Re during the under review period.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: "Understanding Universal BCAR"; "Catastrophe Analysis in A.M. Best Ratings"; "Evaluating Country Risk"; and "Risk Management and the Rating Process for Insurance Companies." Best's Credit Rating Methodology can be found at

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit

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Publication:Business Wire
Geographic Code:9HONG
Date:Nov 29, 2012
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