KUALA LUMPUR, April 5 (Bernama) -- A.M. Best has commented the financial strength rating of A (excellent) and the long-term issuer credit ratings of 'a' of China Reinsurance (Group) Corporation (China Re) and its subsidiaries, China Property & Casualty Reinsurance Company Ltd and China Life Reinsurance Company Ltd.
Meanwhile, the credit rating of China Continent Property & Casualty Insurance Company Ltd (CCIC), remain unchanged following the disclosure on the introduction of strategic investors through CCIC's capital increase announced on March 28, and April 2, 2018.
China Re's board of directors has entered into a share subscription agreement, effective on April 2, between CCIC and its existing shareholder, Ningbo Development & Investment Group Co Ltd as well as eight new strategic investors.
The agreement calls for the issuance of 4.7 billion new shares at RMB2.28 per share for a total of RMB10.7 billion (US$ 1.7 billion) (the capital increase).
The amount of new capital is equivalent to approximately 14 per cent of China Re's consolidated net assets as of Dec. 31, 2017. China Re's shareholding percentage of CCIC will be diluted to 64.30 per cent from 93.18 per cent after the capital increase.
A.M. Best expects the capital increase to continue support of China Re's consolidated risk-adjusted capitalisation in the medium term at current rating level and cooperation with the new investors enhanced CCIC's business growth and portfolio diversification potential, strengthen distribution network and promote innovation.
A.M. Best is the world's oldest and most authoritative insurance rating and information source.
No comments:
Post a Comment