S&P Sees Stability in Asia-Pacific Reinsurance Markets

September 11, 2007

Standard & Poor’s Ratings Services’ new report – “Asia-Pacific Reinsurance Markets Remain Stable Despite Softening” – indicates that ratings on global and domestic reinsurers in the Asia-Pacific markets are expected to remain stable, “reflecting regional market growth, satisfactory underwriting results, and the improved capitalization of some regional players.”

S&P credit analyst Connie Wong commented: “There is divergence in reinsurance pricing across the region, with the more mature markets such as Australia and Japan seeing harder pricing and the emerging markets such as China and Taiwan experiencing softer pricing driven by the recent profitability of cedants.”

The shape of risk ceded in the reinsurance market has also changed in recent years. “In line with global trends, some insurance companies in Asia-Pacific have tried to raise their retention limits to use excess-of-loss protection in order to capture more profits,” Wong continued. “We view this as a supportive factor in contributing to bottom-line profitability.”

Subscribers to RatingsDirect can search for the contents of the “Global Reinsurance Highlights 2007” article series by typing “GRH2007” in the Keyword/Identifier box on the left-hand navigation bar and selecting “Research” in the Search Type box.
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor’s credit ratings, research, and risk analysis, at www.ratingsdirect.com.

If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor’s public Web site at www.standardandpoors.com; select Ratings in the left navigation bar, then Credit Ratings Search. Alternatively, call one of the following Standard & Poor’s numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017.

Source: S&P

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