Credit rating agency AM Best has upgraded Singapore Re’s Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed its Financial Strength Rating (FSR) of A (Excellent).
The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR is stable.
The ratings reflect Singapore Re’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
In addition, the ratings factor in rating enhancement from the company’s ultimate parent, Fairfax Financial Holdings Limited.
The Long-Term ICR upgrade reflects Singapore Re’s sustained improvement in operating performance in recent years, supported by favourable underwriting results and positive investment returns.
In 2025, the reinsurer posted a 26.9% combined ratio, with favourable results continuing into the first half of 2026. AM Best expects strong performance, supported by healthy business growth, while maintaining prudent underwriting, to continue.
Singapore Re’s balance sheet is underpinned by its risk-adjusted capitalisation that is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR).
The company’s investment portfolio focus on cash, deposits, and fixed-income securities, alongside some higher-risk assets like equities.
The reinsurer also strategically uses retrocession with a diversified panel of international partners to boost capacity and manage catastrophe and large risk exposures.
Additionally, Singapore Re benefits from good financial flexibility due to the support provided by Fairfax, AM Best noted.
Singapore Re’s business profile has been assessed as as limited by the rating agency. The company is a modest-sized non-life reinsurer based in Singapore, writing treaty and facultative business primarily in Asia and the Middle East.
Singapore, India, and China, were its top three 2025 markets by gross premium written, supporting regional geographic diversification.
“Despite persistent competitive market conditions, Singapore Re continues to grow its business while maintaining underwriting discipline,” AM best stated.
Concluding: “The rating enhancement from Fairfax factors in explicit and implicit support from the group, including access to shared resources and services across various business functions. Despite Singapore Re’s operations accounting for a small component of Fairfax’s consolidated revenue and earnings, the company is considered strategically important to the group’s international expansion strategy and provides access to local and regional business.
