AM Best Places Credit Ratings of Singapore Reinsurance Corporation Limited Under Review With Developing Implications
SINGAPORE–(BUSINESS WIRE)–AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Singapore Reinsurance Corporation Limited (Singapore Re) (Singapore).
This Credit Rating (rating) action follows an announcement made on the Singapore Exchange (SGX) on 21 April 2021 that Fairfax Asia Limited’s (Fairfax Asia) recent voluntary cash offer to purchase all issued and paid-up ordinary shares in the capital of Singapore Re, other than those already held by Fairfax Asia and other Fairfax Financial Holdings Limited (Fairfax group) companies, has been declared unconditional.
Fairfax Asia’s voluntary cash offer, dispatched on 6 April 2021, was conditional upon receiving valid shareholder acceptances that would result in the Fairfax group holding more than 50% of the voting rights attributable to the issued shares of Singapore Re as at the close of the offer. Whilst the offer period remains open and therefore the overall level of shareholder take-up remains uncertain at this stage, the announcement made on 21 April 2021 confirms that the minimum acceptance condition has been satisfied. Consequently, AM Best expects the transaction to proceed, subject to closing requirements.
The ratings of Singapore Re have been placed under review with developing implications as AM Best needs to assess the impact of the expected change in ownership on Singapore Re’s credit fundamentals. AM Best will need to consider the planned integration of Singapore Re within the Fairfax group, any expected changes in strategy and any implicit or explicit support to be provided by the Fairfax group.
The ratings will remain under review pending completion of the transaction and until AM Best can fully assess the impact of the change in ownership.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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