Singapore Re capital remains solid as AM Best cites discipline

Because most investments are held in cash, deposits and fixed income.

Singapore Re is expected to maintain solid growth and earnings in the coming years, supported by disciplined underwriting and a strong balance sheet, AM Best said. 

The reinsurer reported a 21.3% return on equity in 2024, with favourable results continuing into the first half of 2025. Investment income from interest and dividends also adds a steady boost to profits.

AM Best said the company’s capital position should remain very strong, with most investments held in cash, deposits and fixed income. 

Singapore Re also makes use of retrocession to manage large risks, with most counterparties highly rated. Backing from parent Fairfax Financial Holdings gives the firm added financial flexibility.

Although Singapore Re remains a modest player with some concentration risks in Asia and the Middle East, its long-standing client relationships and Fairfax links provide stability.