S&P boosts Korean Reinsurance

Standard & Poor's said it raised its financial strength and long-term counterparty credit ratings on Korean Reinsurance Co. Ltd. to A- from BBB+, reflecting the company's improved capitalization, supported by increased retained earnings and catastrophe reserves.

The outlook on the long-term counterparty credit rating is stable, the agency said.

According to S&P, backed by solid underwriting performance and relatively stable investment income, Korean Re's adjusted capital increased to Korean won 731 billion in March 2006, compared with W653 billion in March 2005 and W592 billion in March 2004 and that company is expected to be able to maintain capitalization appropriate for the current rating, given the insurer's conservative retrocession policy and stable underwriting performance.

S&P noted that Korean Re's assets are invested conservatively.

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