S&P Global Ratings has placed AA- long-term local currency insurer financial strength and issuer credit ratings on Malaysia-based PCA Reinsurance, according to a Thursday release.
PCA Reinsurance has the same rating as parent Prudential (HKG:2378, SGX:K6S) given its core subsidiary status, S&P said.
The rating agency views the captive reinsurer as a crucial part of Prudential's capital and risk management efforts.
The subsidiary also has close operational, strategic, and financial linkages with the group, the rating agency said, adding that it expects it to further gain from the long-term strong commitment of parent support in several areas.
S&P also does not see the parent getting rid of its stake in PCA Reinsurance.
The outlook is stable, based on S&P's view that the reinsurer will continue to be a captive reinsurer for its parent at least over the next two years.
Significant shifts in the subsidiary's group credit profile or role as a captive reinsurer could lead to future rating actions, S&P said.
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