Singapore Reinsurance

I took a small stake in SingRe several years ago, then divested it after some time.

Like other commentators, I think that the underwriting profit is not important. What is more important is how SingRe manages their float. They seem to be very conservative in their investment strategy - hence resulting in pretty stodgy returns.

Of course, if I were cynical, I would say that their investment strategy is conservative because the ultimate majority owners do not want counterparty risk on their reinsurance. i.e. want to make absolutely sure that if SingRe needs to cough up any payments, it is able to. I would not be surprised if underwriting returns were subject to regulatory review, but not the investment returns from the float. So this is another way of affirming D.O.G's opinion that the company is run for the benefit of the majority shareholders, albeit not in a direct way.

First Capital Insurance Limited bought 559,000 shares of the company for S$176,252.70, c31.5 cents, on 31 December 2014.
This upped its stake to 19.06% and Fairfax Financial Holdings deemed interest to 27.76%.

One more foreign competitor into Singapore market...

Great American Insurance Group opens Singapore office

SINGAPORE (Oct 28): Great American Insurance Group has opened its first office in Singapore and Asia.

The Singapore office, located in the central business district, will focus mainly on providing insurance to small and medium-sized enterprises in specific sectors, such as the marine sector. The firm expects to hire around 100 staff locally to support its operations over the next five years.

"Market opportunities are abundant in Asia, particularly in the specialty classes such as marine and property, and Singapore's position as a mature, stable and substantial insurance hub makes it a natural entry point into the region, says Chee Keng Koon, chief executive of Great American's Singapore branch.
http://www.theedgemarkets.com/sg/article...ore-office

(28-10-2015, 03:49 PM)CityFarmer Wrote: One more foreign competitor into Singapore market...

Great American Insurance Group opens Singapore office

SINGAPORE (Oct 28): Great American Insurance Group has opened its first office in Singapore and Asia.

The Singapore office, located in the central business district, will focus mainly on providing insurance to small and medium-sized enterprises in specific sectors, such as the marine sector. The firm expects to hire around 100 staff locally to support its operations over the next five years.

"Market opportunities are abundant in Asia, particularly in the specialty classes such as marine and property, and Singapore's position as a mature, stable and substantial insurance hub makes it a natural entry point into the region, says Chee Keng Koon, chief executive of Great American's Singapore branch.
http://www.theedgemarkets.com/sg/article...ore-office

This shd be a non-issue to SingRe IMO. The bigger issue haunting the reinsurance industry is a massive oversupply of capital thanks to hedge funds moving in (Third Point Re and Greenlight Re) and the burgeoning growth of insurance-linked securities, that should be their biggest worry. For supply to die down, it would require a shock event (a major event) like 9/11, GFC (man-made) or the Fukushima disaster (nature) that will wreck insurers globally. The recent Tianjin blast would have an estimated $250m claims impact on Swiss Re, not sure on SingRe yet but total estimated claims are at about $1-$1.5bn in total. It's a small blip on many insurers, nothing compared to the monster wave of claims they had to endure in the aftermath of Fukushima.

Competitors wise, this news isn't as scary compared to Berkshire's entry into Singapore's market last year selling nonlife insurance and poaching several AIG executives while at it. Buffett has already commented that Berkshire is moving away from reinsurance due to limited opportunities (he cut his Munich Re stake) and into commercial insurance in a substantial way. BH Specialty's website already has job openings in Singapore. United Overseas Insurance would see much greater competition than SingRe in this arena, same goes for GAIG.

For SingRe to be able to underwrite profitably in markets like this, they might have to actually shrink their books, like what Buffett does, which is contrarian and what shareholders might dislike but it would keep their head above the water.

(Vested with a small amount)

(01-11-2015, 10:09 PM)SpeedingBullet Wrote:

(28-10-2015, 03:49 PM)CityFarmer Wrote: One more foreign competitor into Singapore market...

Great American Insurance Group opens Singapore office

SINGAPORE (Oct 28): Great American Insurance Group has opened its first office in Singapore and Asia.

The Singapore office, located in the central business district, will focus mainly on providing insurance to small and medium-sized enterprises in specific sectors, such as the marine sector. The firm expects to hire around 100 staff locally to support its operations over the next five years.

"Market opportunities are abundant in Asia, particularly in the specialty classes such as marine and property, and Singapore's position as a mature, stable and substantial insurance hub makes it a natural entry point into the region, says Chee Keng Koon, chief executive of Great American's Singapore branch.
http://www.theedgemarkets.com/sg/article...ore-office

This shd be a non-issue to SingRe IMO. The bigger issue haunting the reinsurance industry is a massive oversupply of capital thanks to hedge funds moving in (Third Point Re and Greenlight Re) and the burgeoning growth of insurance-linked securities, that should be their biggest worry. For supply to die down, it would require a shock event (a major event) like 9/11, GFC (man-made) or the Fukushima disaster (nature) that will wreck insurers globally. The recent Tianjin blast would have an estimated $250m claims impact on Swiss Re, not sure on SingRe yet but total estimated claims are at about $1-$1.5bn in total. It's a small blip on many insurers, nothing compared to the monster wave of claims they had to endure in the aftermath of Fukushima.

Competitors wise, this news isn't as scary compared to Berkshire's entry into Singapore's market last year selling nonlife insurance and poaching several AIG executives while at it. Buffett has already commented that Berkshire is moving away from reinsurance due to limited opportunities (he cut his Munich Re stake) and into commercial insurance in a substantial way. BH Specialty's website already has job openings in Singapore. United Overseas Insurance would see much greater competition than SingRe in this arena, same goes for GAIG.

For SingRe to be able to underwrite profitably in markets like this, they might have to actually shrink their books, like what Buffett does, which is contrarian and what shareholders might dislike but it would keep their head above the water.

(Vested with a small amount)

Sing Re has track record of under-writing with prudence... they have always claimed that they will try to stay afloat with underwriting while making acceptable returns on their investment portfolio.

The under-writing books however is not as clear but it is mainly a domestic book.

The track record is there but it is a counter that you have to seriously trust mgt.

They have a substantial holder in an angmo insurer. Can't remember off my head... the speculative angle on a takeover has been there for years.

Apart from that, it is a highly difficult industry to analyse.

Odd Lots Vested
With Autographed Share Cert
By directors (including that of late Tan Eng Heng Of Asia Life)

(01-11-2015, 10:43 PM)greengiraffe Wrote: Sing Re has track record of under-writing with prudence... they have always claimed that they will try to stay afloat with underwriting while making acceptable returns on their investment portfolio.

The under-writing books however is not as clear but it is mainly a domestic book.

The track record is there but it is a counter that you have to seriously trust mgt.

They have a substantial holder in an angmo insurer. Can't remember off my head... the speculative angle on a takeover has been there for years.

Apart from that, it is a highly difficult industry to analyse.

Odd Lots Vested
With Autographed Share Cert
By directors (including that of late Tan Eng Heng Of Asia Life)

I reckon, the "Ang Mo insurer" is First Capital Insurance.

No wonder it is holding so well in spite of bear market.

New substantial shareholder emerged : Dalton Investment LLC
As at 10 February 2016, it was holding 5.01% of total number of voting shares.

As at 28 February 2017, First Capital Insurance Limited owns 115,370,835 shares.
Fairfax Financial Holdings Limited is deemed to have an interest in shares held by First Capital Insurance Limited, Newline Corporate Name Limited and Newline Holdings UK Limited.

There was a married deal of 115,370,835 shares @ 0.320 this morning.

Fairfax Financial Holdings Limited  has cashed out ?

Mitsui Sumitomo bought First Capital Insurance from Fairfax for 1.6 billion.  The deal was expected to be wrapped up in early 2018.  The sale of 19% of Singapore Reinsurance by First Capital Insurance was perhaps a pre-condition or a decision made by Mitsui Sumitomo.  In a way, Fairfax has already cashed out of Singapore Re......so  the interesting thing left is .....who is the buyer of this 19% and what are they going to do to this grossly undervalued and conservative reinsurer.

(21-12-2017, 08:20 AM)ACTIVIST SPEAKS Wrote: Mitsui Sumitomo bought First Capital Insurance from Fairfax for 1.6 billion.  The deal was expected to be wrapped up in early 2018.  The sale of 19% of Singapore Reinsurance by First Capital Insurance was perhaps a pre-condition or a decision made by Mitsui Sumitomo.  In a way, Fairfax has already cashed out of Singapore Re......so  the interesting thing left is .....who is the buyer of this 19% and what are they going to do to this grossly undervalued and conservative reinsurer.

Fairfax also not a small insurer. Fairfax also did no corp actions with SpRe when they bought First Capital last time.


SpRe has fragmented shareholdings. Nobody's child I guess