ASIA CAPITAL RE RATED SINGLE A MINUS BY AM BEST

Singapore-based Asia Capital Re (Singapore) has been assigned a financial strength rating of single A minus by rating agency AM Best because of its “solid capitalisation, experienced management team and sound business plan”. Asia Capital Re will focus exclusively on Asdian risk, writing both treaty and facultative business. It is being capitalised at $565m through venture capital backing. Its owners are 3i, Khazanah Nasional Berhad, funds affiliated to Off Ziff Capital, Morgan Stanley Private Equity Asia, Crédit Suisse Private Equity Asia and Luxembourg-based Worldwide Sicav. AM Best noted that several key operational positions were still to be filled, and warned that ACR was likely to face increased competition from established reinsurers in Asia. “The additional capacity brought to the market with no recent major reinsurance losses in Asia could dampen expected returns if pricing of reinsurance coverage fails to meet anticipated levels”, AM Best said.