2025 Jun 12, 08:01
AM Best has revised the outlook for Korean Reinsurance Company (KRE) from stable to positive, while affirming its Financial Strength Rating (FSR) of A (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of "a" (Excellent). According to AM Best, the ratings reflect KRE's very strong balance sheet strength, adequate operating performance, favorable business profile, and appropriate enterprise risk management. The rating agency expects an improvement in KRE's balance sheet strength from 2023 onwards, leading to the revision of the Long-Term ICR outlook. AM Best also noted that KRE's risk-adjusted capitalization is comfortably at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), and is expected to improve further due to the company's plan to restructure the underwriting portfolio, increased capital from recent hybrid bond issuances, and solid profit retention
Positive rating actions could occur if there is sustained improvement in KRE's balance sheet strength, while negative rating actions could arise from a sustained deteriorating trend in the company's operating performance. Additionally, negative rating actions could occur if there is a material decline in KRE's risk-adjusted capitalization, triggered by incidents such as multiple medium- or large-scale catastrophe losses retained in a fiscal year.