Thai Reinsurance's rating under CreditWatch

 "The CreditWatch action reflects our view that Thai Re's credit profile would weaken if the estimated losses from recent severe flooding in Thailand exceed the current protection from its retrocession cover," said Standard & Poor's credit analyst Paul Clarkson. "This risk has not materialised so far, but the Office of the Insurance Commission estimates that total industry losses due to flood-related damage and loss of business could reach Bt200 billion. We believe Thai Re would incur a material proportion of the losses, and this could affect its capital position."
 Thai Re has about 14 per cent share of the domestic non-life reinsurance market, and therefore will have high exposure to flood-affected areas, it said. The creditwatch action could be resolved next month on updated information of losses.
 The rating could be lowered one notch or more, depending on the severity of the loss development to Thai Re's retrocession program and capital base, the rating company said.