Exclusive pan-Asia focused reinsurer to open in Singapore

SINGAPORE--The first exclusively pan-Asia focused independent reinsurer has obtained $620 million in capital funding and it will open in Singapore, according its investors.

London-based 3i, a private equity and venture capital firm, and Khazanah Nasional Berhad, the investment arm of the government of Malaysia, last week said they had completed raising the capital on behalf of Asia Capital Holding.

Its wholly owned subsidiary, Asia Capital Reinsurance Group, has been granted registration as a reinsurer by the Monetary Authority of Singapore, according to 3i and Khazanah.

Asia Capital Re will focus on specialty lines of reinsurance in the large-risks segment such as aviation, marine, energy, large infrastructure and engineering projects across Asia, according to 3i and Khazanah.

Asia Capital Re co-founders John Tan and Heini Buergi are the reinsurer's chief executive officer and chief operating officer, respectively.

The reinsurer has an A- financial strength rating from Oldwick, N.J.-based A.M. Best Co. Inc.

In a statement, Best said that "the ratings reflect ACR's solid capitalization, experienced management team and sound business plan. The rating agency also noted that it expects Asia Capital Re to be "challenged by increased competition from the established reinsurance companies in Asia, as they have strengthened their capitalization in recent years.

"The additional capacity brought to the market with no recent major reinsurance losses in Asia could dampen expected returns if pricing of reinsurance coverage fails to meet anticipated levels. Furthermore, the ability of ACR to effectively build and retain market acceptance will only be proven over time," Best said.