Prudential PLC captive insurer assigned rating

Prudential Plc’s Labuan-based captive reinsurer PCA Reinsurance Company has been assigned a AA- long-term local currency insurer financial strength rating by S&P Global. 

The captive life reinsurer plays an integral role in the Prudential group's capital and risk management strategy in Asia and Africa, S&P said. It added that the outlook is stable. 

The ratings agency said the company was licensed in 2012 to write only captive insurance within the group and while its capital and earnings contributions to Prudential PLC were small, but it expected its business to grow in line with the parent group's risk and capital management mandate. 

“This is particularly given Prudential PLC's initiative to tap diversified and profitable growth markets in Asia and Africa,” the agency said. 

“The stable outlook on PCA Re mirrors the outlook on the other core operating subsidiaries under Prudential PLC. The stable outlook also reflects our belief that PCA Re would originate its business entirely from within Prudential PLC as a captive reinsurer, at least over the next two years. In addition, we expect the captive reinsurer to continue to support the group's capital and risk management initiatives.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.