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FOR IMMEDIATE RELEASE
HONG KONG - AUGUST 21, 2014 01:40 PM (EDT)
A.M. Best has commented that the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of SHC Insurance Pte. Ltd. (SHC Insurance) (Singapore) are unchanged following the announcement by SHC Capital Asia Limited (SHC Capital) that SHC Insurance has been acquired by Germany-based ERGO International AG (ERGO).
SHC Capital, the holding company of SHC Insurance, announced the disposal of SHC Capital's entire shareholding interest in SHC Insurance on June 20, 2014, and it was completed Aug. 1, 2014. SHC Insurance is now a fully-owned subsidiary of ERGO. Under the sales and purchase agreement (SPA), the net proceeds from the disposal were approximately 1.3x of SHC Insurance's book value.
As a condition of the SPA, the key management of SHC Insurance will be retained in its current capacity. Therefore, it is expected that no significant change in the company's operations will occur in the near future. With regard to business strategy, SHC Insurance is expected to further scale up through ERGO's global business network and capabilities.
SHC Insurance's ratings were affirmed on Jan. 16, 2014, due to its adequate risk-based capitalization, favorable operating performance and sound risk management practices.
The methodology used in determining these interactive ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.