MARCH 23, 2021 09:00 AM (EDT)
AM Best Comments on Credit Ratings of Singapore Reinsurance Corporation Limited
|Kanika Thukral |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
SINGAPORE - MARCH 23, 2021 09:00 AM (EDT)
AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Singapore Reinsurance Corporation Limited (Singapore Re) (Singapore) remain unchanged following an announcement on 19 March 2021, that Fairfax Asia Limited (Fairfax Asia) intends to make a voluntary conditional 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. The outlook of these Credit Ratings (ratings) is negative.
The formal offer document, including the terms and conditions of the offer, is expected to be dispatched to shareholders of Singapore Re between 14 and 21 days following the recent announcement. Subsequently, a circular containing the advice of an appointed independent financial adviser and the recommendation of the company’s independent directors in respect of the offer will be sent to shareholders. The offer is expected to be conditional upon Fairfax Asia receiving valid acceptances from shareholders that would result in the Fairfax group holding more than 50% of the post-transaction voting rights attributable to the issued shares of Singapore Re.
The take-up rate of the offer by Singapore Re’s shareholders and therefore the likelihood of this transaction being executed remains unclear at present. AM Best will continue to monitor the progress of the transaction and assess the potential impact on Singapore Re’s rating fundamentals.
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.