ACR Voluntarily Withdrew from Rating Services of AM Best and Standard & Poor’s9th December 2019
Singapore, 9 December 2019 – Asia Capital Reinsurance Group Pte. Ltd. (“ACR” or “the Company”) has voluntarily withdrawn from all rating services of AM Best and Standard & Poor’s for the Company, its parent company ACR Capital Holdings Pte. Ltd. and its subsidiary Asia Capital Reinsurance Malaysia Sdn. Bhd.
This follows ACR’s 5th December 2019 announcement on its intended 100% sale to Catalina Holdings (Bermuda) Ltd (“Catalina”), and the associated voluntary cessation of writing new business with immediate effect as part of the transition towards becoming a platform for Catalina’s run-off services in Asia.
As part of this new business direction, the Company no longer views its credit ratings as necessary to conduct the run off of its own in-force portfolio and further after the completion of the sale.
The decision to withdraw from the rating services is an administrative step that is unrelated to the Company’s exceptional financial strength and balance sheet capabilities. In every applicable measurement, including regulatory risk-based capital models and the rating agencies’ own models, the Company’s capital position is extremely strong, with a substantial buffer over the highest level of financial strength as viewed by these stakeholders.
Specifically, as of 30th September 2019,
• ACR carries a total of US$1.34 billion of financial assets, which exceeds the value of all gross contract liabilities, including the Unearned Premium Reserve;
• Of the total financial assets, 90% are highly liquid sovereign and corporate fixed income securities with average rating of A-; the Company does not carry any equities and other high volatility assets in its portfolio. US$184 million, or 14% of all financial assets, are in cash;
• ACR employs no financial leverage and has no debt. Its capital base comprised purely of US$835 million of Tier 1 equity capital – one of the lowest operational leverage ratios in the industry. The Company’s reserves are prudent, with every significant loss event reserved on its own basis to the expected ultimate loss, over and above the Company’s modeled actuarial reserve amount.
AM Best’s ratings are withdrawn effective from 9th December 2019. Standard & Poor’s has also commenced their ratings withdrawal process for ACR.
ACR previously held “A-” ratings from both AM Best and Standard & Poor’s. Asia Capital Reinsurance Malaysia Sdn. Bhd., its Kuala-Lumpur based subsidiary, held an “A-” rating from AM Best. ACR’s parent company, ACR Capital Holdings Pte. Ltd., was previously also rated by AM Best.
About Asia Capital Reinsurance Group Pte. Ltd.
Asia Capital Reinsurance Group Pte. Ltd. (“ACR”) provides reinsurance solutions for large and specialist risks. Headquartered in Singapore, ACR has strategic offices in select cities across Asia, including in Hong Kong, Taiwan, Japan, Korea, India, Malaysia and Vietnam. ACR is a wholly owned subsidiary of ACR Capital Holdings Pte. Ltd., a risk solutions provider ranked among A.M. Best’s top 50 global reinsurance groups since 2009. For more information, please visit www.asiacapitalre.com or contact: