$500m Hong Kong start-up seeks rating from AM Best
Nine Merchants Re, the new reinsurer backed by First Seafront Financial, has confirmed that it is in discussions with the Hong Kong regulator and rating agency AM Best.
The company, which will have initial capital of $500 million, said it is hoping to secure an A- rating from AM Best.
Nine Merchants Re intends to underwrite primarily Asia Pacific treaty reinsurance with a focus on China, Japan, South Korea, and Australian/New Zealand but added that it will also consider underwriting selected worldwide risks.
Frank Gong, chairman of both First Seafront Financial and Nine Merchants Re, said: “we have a reputation of global market knowledge and intelligence and backing professional people in establishing businesses that can create long term value.
“In working with Nine Merchants Re, we see the opportunity to enter the reinsurance market at a time when Asia Pacific is growing. The reinsurance industry has a proven business model and our ability to match deep financial resources with industry talent will underpin our expansion into the reinsurance market globally.”
Stephen Warwick, CEO of Nine Merchants Re, added: “Reinsurance is a proven business model. Innovation over the past two decades has largely come from how new capital has been employed and distributed. We now have the privilege of working with the exciting dynamic of smart Chinese capital entering the market to continue innovation and support growth in the Asia Pacific region and beyond.”
