KUALA LUMPUR, April 30 (Bernama) -- AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of Singapore Reinsurance Corporation Limited (Singapore Re) Singapore.
This Credit Rating (rating) action follows an announcement made recently on the Singapore Exchange that Fairfax Asia Limited’s (Fairfax Asia) recent voluntary 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, has been declared unconditional.
Fairfax Asia’s voluntary cash offer, dispatched on April 6, was conditional upon receiving valid shareholder acceptances that would result in the Fairfax group holding over 50 per cent of the voting rights attributable to the issued shares of Singapore Re as at the close of the offer.
Whilst the offer period remains open and therefore the overall level of shareholder take-up remains uncertain at this stage, the announcement made on April 21 confirms that the minimum acceptance condition has been satisfied.
Consequently, AM Best expects the transaction to proceed, subject to closing requirements, according to a statement.
The ratings of Singapore Re have been placed under review with developing implications as AM Best needs to assess the impact of the expected change in ownership on Singapore Re’s credit fundamentals.
AM Best will need to consider the planned integration of Singapore Re within the Fairfax group, any expected changes in strategy and any implicit or explicit support to be provided by the Fairfax group.
The ratings will remain under review pending completion of the transaction and until AM Best can fully assess the impact of the change in ownership.
More details at www.ambest.com.
-- BERNAMA
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