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A.M. Best Affirms Credit Ratings of ACR Capital Holdings Pte. Ltd. and Its Associated Companies

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A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"a-" of Asia Capital Reinsurance Group Pte. Ltd. (Asia Capital Re)
(Singapore) and its subsidiary, Asia Capital Reinsurance Malaysia Sdn
Bhd (ACRM) (Malaysia). A.M. Best also has affirmed the Long-Term ICR of
"bbb-" of the holding company, ACR Capital Holdings Pte. Ltd. (ACR
Holdings) (Singapore). The outlook of these Credit Ratings (ratings) is
negative.

The ratings of Asia Capital Re reflect its balance sheet strength, which
A.M. Best categorizes as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk
management (ERM).

Asia Capital Re's risk-adjusted capitalization, as measured by Best's
Capital Adequacy Ratio (BCAR), remains solid and is supported by low
underwriting leverage and good asset quality.

The ratings of ACRM reflect its balance sheet strength, which A.M. Best
categorizes as very strong, as well as its adequate operating
performance, limited business profile and appropriate ERM. The ratings
also reflect the support it receives from its parent, Asia Capital Re.

ACRM's balance sheet strength remains supported by significant
retrocession support from its parent.

Both companies also share certain services and infrastructure.

The negative outlooks reflect Asia Capital Re's record of varying and
unprofitable underwriting performance. Although narrowed, Asia Capital
Re registered a marginal underwriting loss in 2017. Unaudited interim
results as of May 2018 showed an underwriting profit, as remedial
actions to improve underwriting margins are implemented. Nonetheless,
A.M. Best remains concerned about execution risk related to its
initiatives to improve its technical results by rebalancing its
underwriting portfolio amid soft market conditions. Regarding ACRM,
concerns remain over its business profile.

ACR Holdings' Long-Term ICR reflects the standard notching from Asia
Capital Re, its primary operating entity.

Further negative actions regarding Asia Capital Re could arise from
deterioration in its operating performance. A revision to a stable
outlook could occur if Asia Capital Re achieves sustained underwriting
profitability while meeting its planned premium targets.

Further negative actions regarding ACRM could arise if the support
provided by Asia Capital Re diminishes.

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

This press release relates to Credit Ratings 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 see A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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