Ratings Recap: Central Re, Evergreen

Standard & Poor’s Ratings Services has affirmed its ‘A-‘ insurer financial strength and counterparty credit ratings on Taiwan’s Central Reinsurance Corp. with a stable outlook. “The ratings continue to reflect Central Re’s strong position in the Taiwan market, good operating performance, and satisfactory capitalization,” noted S&P credit analyst Connie Wong. “Moderating factors include the challenges the insurer faces to expand its local business.” Central Re is the sole domestic provider of reinsurance in Taiwan. S&P said its “strong position and good connections with local insurers generate stable, good quality business. The company had a 22 percent share of the non-life reinsurance market and a 13 percent share of the life reinsurance market in terms of premiums ceded by domestic insurers in 2006.”

A.M. Best Co. has upgraded the financial strength rating (FSR) to ‘A’ (Excellent) from ‘A-‘ (Excellent) and assigned an issuer credit rating (ICR) of “a” to Bermuda-based Evergreen Reinsurance Company, Ltd. (ERCL). Best also revised the outlook for the FSR to stable from positive, and assigned a stable outlook to the ICR. The ratings “reflect ERCL ‘s excellent capitalization, consistently strong operating performance and its unique role as the primary insurance carrier for its ultimate parent, Evergreen Group,” said Best. “These positive rating factors are derived from ERCL’ s conservative underwriting standards, low cost operating structure and multiple product line book of business and broad geographic exposure base.”