A.M. Best Affirms Ratings of Singapore Reinsurance Corporation Limited

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and
the issuer credit rating of "a-" of Singapore Reinsurance Corporation Limited
(Singapore Re) (Singapore). The outlook for both ratings is stable.

The ratings reflect Singapore Re`s superior risk-adjusted capitalization level,
increasing presence in overseas markets and highly liquid investment portfolio.

Singapore Re`s risk-adjusted capitalization, as measured by Best`s Capital
Adequacy Ratio (BCAR), remained superior despite a 14.8% decrease in capital and
surplus in 2008. The decrease was mainly attributed to the impairment losses on
investments.

Singapore Re has a more diversified underwriting portfolio when compared to its
portfolio prior to 2004. In response to the termination of the voluntary
cession, which caused a substantial decrease in gross premiums written (GPW) in
2005, the company has expanded its business in select overseas markets,
particularly China and India, in recent years. As a result, the overseas
business contributed approximately 31% of Singapore Re`s total GPW in 2008.

Singapore Re has a highly liquid investment portfolio, with cash and deposits
and fixed income securities comprising nearly 69% of its total assets in 2008.
The bond portfolio was comprised of high quality bonds.

Offsetting factors include a deteriorated underwriting performance, lack of
sustainable premium growth drivers and intensified market competition.

Singapore Re suffered from losses attributable to severe winter snowstorms, the
Sichuan Earthquake and Guangdong flooding in China in 2008. Additionally, the
loss ratio deteriorated by 8.2% in 2008. Given the capital buffer that existed,
A.M. Best believes that Singapore Re`s prevailing underwriting volatility is
still manageable. Nonetheless, A.M. Best remains cautious about Singapore Re`s
underwriting profitability in its overseas portfolio and the impact on the
company`s overall operating performance.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Billy Kwan, +852-2827-3405
billy.kwan@ambest.com
or
Moungmo Lee, +852-2827-3402
moungmo.lee@ambest.com
or
Public Relations
Jim Peavy,+(1) 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow,+(1) 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009