S&P cites ongoing group backing for Sing Re’s stability

The agency noted that the guarantee only applies to reinsurance obligations.

Singapore Reinsurance Corp. Ltd. (Sing Re) is expected to maintain a stable operating outlook, with S&P Global Ratings saying the company will continue to benefit from an unconditional guarantee provided by Odyssey Reinsurance, its sister company under Fairfax Financial Holdings.

S&P said the guarantee is expected to stay in force and will continue to cover all of Sing Re’s present and future reinsurance liabilities. 

Because the guarantee is irrevocable and enforceable by Sing Re’s policyholders, the agency expects Sing Re’s rating and outlook to remain aligned with those of Odyssey Reinsurance.

The agency noted that the guarantee only applies to reinsurance obligations and does not extend to general obligations, which is why it did not assign Sing Re an issuer credit rating. 

However, the financial strength rating was equalised with Odyssey Reinsurance’s, reflecting the continued support expected from within the Fairfax group.

Sing Re underwrites property and casualty reinsurance across Asia. 

In 2024, it recorded $312m in gross premiums written and $161m in net premiums written, representing less than 1% of Fairfax’s total premiums. 

According to S&P, the stable outlook reflects the expectation that Sing Re will continue to operate with the backing of Odyssey Reinsurance, which the agency considers a core subsidiary of Fairfax.