Ratings Roundup: Korean Re, Sunderland Marine

A.M. Best Co. has affirmed the financial strength rating of ‘A-‘ (Excellent) and the issuer credit rating (ICR) of “a-” of Korean Reinsurance Company, and has revised its outlook on both ratings to positive from stable. “The ratings reflect the company’ s continuous growth in absolute capitalization, its excellent operating performance and dominant market position in the Korean reinsurance industry.” Best also noted that “Korean Re’ s operating performance has been stable throughout the years. The combined ratio has been maintained at a level of 95 percent-97 percent over the past five years. This is due to adequate retrocession, a well balanced business portfolio and the company’ s focus on proportional business.”

A.M. Best Co. has affirmed the financial strength rating of ‘A-‘ (Excellent) and the issuer credit rating of “a-” of Sunderland Marine Mutual Insurance Company Limited (SMMI) with stable outlooks. Best said it “believes that SMMI will maintain excellent risk-adjusted capitalization in 2007 and 2008 despite challenges it is likely to face writing its specialist marine account (expected to constitute over 80 percent of gross premium income for the period). In 2006 and 2007 to date, the company has reduced its underwriting exposure in response to market weakening for its main marine risks, and A.M. Best anticipates that this approach will continue into 2008.