SINGAPORE, March 3 (Bernama-BUSINESS WIRE) -- A.M. Best has upgraded the financial strength rating (FSR) to B+ (Good) from B (Fair) and the issuer credit rating (ICR) to “bbb-” from “bb+” of Asian Reinsurance Corporation (Asian Re) (Thailand). The outlook on both ratings has been revised to stable from positive.

The upgrade recognizes the reduction in transfer risk associated with a significant portion of Asian Re’s cash and deposit balances.

Following a series of recapitalization initiatives, Asian Re’s year-end 2015 capital position stood at USD 63 million, which was above the USD 55 million level it reached before being hit by catastrophe events in 2011-2012. Since then the company has maintained positive overall results in 2013, 2014 and 2015.

Offsetting rating factors include the soft business environment for reinsurers in which Asian Re is seeking to revive relationships with cedants and rebuild its underwriting portfolio.

Positive rating momentum could result from achieving a trend of stable underwriting results as the company rebuilds its profile and premium base.

Negative rating action could result from a material deterioration in operating performance or any increase in assets subject to transfer restrictions.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
 
Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
 
Contacts
A.M. Best Company, Inc.
Chi Yeung Lok, +65-6589 8400, ext. 211
Senior Financial Analyst
chi-yeung.lok@ambest.com
or
Moungmo Lee, +65-6599 8412, ext. 210
Managing Director
moungmo.lee@ambest.com
or
Christopher Sharkey, +(1) 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Company, Inc.
 
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--BERNAMA