CORRECTING and REPLACING A.M. Best Assigns Ratings to Peak Reinsurance Company Limited

  CORRECTING and REPLACING A.M. Best Assigns Ratings to Peak Reinsurance
  Company Limited

CORRECTION...by A.M. Best Co.

Business Wire

HONG KONG -- December 28, 2012

Second graph, first sentence of release should read:Peak Re is licensed in
Hong Kong as a general reinsurer with a focus on the Asia Pacific region
(sted:Peak Re is provisionally licensed in Hong Kong as a general reinsurer
with a focus on the Asia Pacific region).

The corrected release reads:

        A.M. BEST ASSIGNS RATINGS TO PEAK REINSURANCE COMPANY LIMITED

A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and
issuer credit rating of "a-" to Peak Reinsurance Company Limited. (Peak Re)
(Hong Kong). The outlook assigned to both ratings is stable.

Peak Re is licensed in Hong Kong as a general reinsurer with a focus on the
Asia Pacific region. With initial capital of USD 550 million, the company is
85.1% owned by Fosun International Limited (Fosun) and 14.9% owned by
International Financial Corporation. Fosun is a Hong Kong listed conglomerate
with operations and investments in pharmaceuticals and healthcare, property,
steel, mining, retail, services and insurance businesses in Mainland China.

The ratings of Peak Re are based on its sound risk-adjusted capitalization and
its prudent business plan. The assumptions used in the company’s business plan
are in line with the average of regional reinsurers. Peak Re’s net
underwriting leverage is anticipated to remain below one times over the next
five years.

Partially offsetting these positive rating factors are the start-up nature of
Peak Re and the challenge it faces to execute its business plan under the
increasing competition from both the established reinsurers as well as other
new entries within the region. Moreover, Peak Re could potentially be exposed
to a frequency of events that will pressure its capital strength during its
early years of operation.

Peak Re is well positioned at its assigned ratings over the near term. Factors
that may trigger negative rating actions include significant adverse deviation
of its risk-adjusted capital relative to its business plan and failure to
execute its business plan or meet its planned underwriting performance.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Key criteria utilized include: “Understanding Universal BCAR”;
“Catastrophe Analysis in A.M. Best Ratings”; “Rating New Company Formations”;
“Evaluating Non-Insurance Ultimate Parents”; and “Risk Management and the
Rating Process for Insurance Companies.” Best’s Credit Rating Methodology can
be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contact:

A.M. Best Co.
Vivian Cheung
Financial Analyst
+852-2827-3411
vivian.cheung@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
+1-908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Michael Wong
Senior Financial Analyst
+852-2827-3418
michael.wong@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
+1-908-439-2200, ext. 5644
james.peavy@ambest.com
 
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