Thai Reinsurance’s (THRE) financial performance is forecast to stabilise in 2023, supported by lapsed COVID-19 policies and a hardening market, says Fitch Ratings.
The global credit rating agency also forecasts that its combined ratio will improve to 97%-102% in 2023, from 112% in 9M22 (average 2019-2021: 107%).
Fitch said, “We expect the reinsurer to tighten underwriting terms and conditions to become more selective and review its retrocession arrangement to ensure adequate risk protection, which will help to improve profitability and limit losses. We also expect return on equity to recover to mid-single-digit levels, excluding the benefits of its subsidiary’s IPO in 2023, which should support its current ratings level.”
Fitch has affirmed THRE’s Insurer Financial Strength (IFS) Rating at ‘A-‘ (Strong). The outlook is ‘Stable’.
The affirmation reflects THRE’s…
