AM Best


A.M. Best Affirms Ratings of Labuan Reinsurance (L) Ltd


CONTACTS:

Chi Yeung Lok
Senior Financial Analyst
+65-6589 8400, ext. 211
chi-yeung.lok@ambest.com

Moungmo Lee
Managing Director, Analytics
+65-6589 8400, ext. 210
moungmo.lee@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

SINGAPORE - NOVEMBER 25, 2015 07:57 AM (EST)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Labuan Reinsurance (L) Ltd (Labuan Re) (Malaysia). The outlook for both ratings is stable.

The rating affirmations acknowledge Labuan Re’s risk-adjusted capitalization and low event retention. Exposure to the Lloyd’s market via Labuan Re’s subsidiary, Labuan Re Underwriting Ltd, has provided Labuan Re with a steady source of profitable business and helped the company to maintain profitability while remediating its self-underwritten portfolio after the 2011-2012 catastrophe years. Led by improving claims ratios, underwriting profitability has started emerging in 2015, which provides the company with a better balance of earnings.

Offsetting rating factors include a drag on the company’s expense ratio as profitable growth remains challenging for market participants. Furthermore, increased market competition for participation in Lloyd’s business could reduce profitability in this important business segment of the company.

Upward rating movements are unlikely. Negative rating pressure could result from deterioration in the good and balanced operating result trend that has recently emerged, as well as a reduction in risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
086913 Labuan Reinsurance (L) Ltd
091210 Labuan Reinsurance (L) Ltd
085202 Lloyd's