Korean Reinsurance Company (Korean Re), the Seoul-based reinsurer, has announced that its recently established branch in Switzerland has obtained long-term issuer credit and financial strength ratings of ‘A’ from S&P Global Ratings.
The Zurich-based subsidiary, called Korean Reinsurance Switzerland AG, was licenced to start reinsurance business from June 1, 2019.
Korean Re said the rating will open the way for the successful operation of the Swiss business, which will help the reinsurer to diversify away from its domestic market and boost its premium volume.
“It is definitely great news, which heralds a good start for Korean Re Switzerland,” said Jong-Gyu Won, Chief Executive Officer (CEO) of Korean Re.
“I expect our new entity to become a major hub that brings growth to our international business,” he added.
The company plans to increase the portion of its overseas business to 80% by 2050, it revealed in 2014. Currently, Korean Re’s overseas business accounts for 24.7% of its total revenue.
S&P also assigned a stable outlook to the Swiss subsidiary, which it noted is set to receive strong support in operations, underwriting, reinsurance and risk management.