S&P affirms Asia Capital Reinsurance

S&P said it affirmed the A- local currency issuer credit ratings on Asia Capital Reinsurance Group Pte. Ltd.

The outlook is stable.

The agency said it affirmed the ratings because it expects the company to maintain its extremely strong capital adequacy and improve its underwriting performance over the next two years.

The reinsurer's high retrocession usage and efforts to de-risk its investment portfolio through increasing allocation of higher-rated bonds in exchange of equities underpin its extremely strong capital position, S&P said.

However, the agency said the modest size of the company’s overall capital continues to leave it more vulnerable to single-event losses than large global peers, limiting the strength of its capital.

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