A.M. Best Co. has assigned a financial strength rating of ‘A’ (Excellent) and an issuer credit rating of “a” to Starr International Insurance (Singapore) Pte. Ltd. (SIIS), a wholly owned subsidiary of Bermuda-based Starr Insurance & Reinsurance Limited (SIRL) and an indirect wholly owned subsidiary of Panama-based Starr International Company, Inc., a private investment holding company. The outlook assigned to both ratings is stable.
The ratings reflect SIIS’ “solid risk-adjusted capital and the explicit support it receives in terms of underwriting, asset management and reinsurance arrangements from the affiliated entities of SIRL,” said Best. The ratings also acknowledge SIIS’ “experienced management team, which has an excellent track record in the local insurance markets.”
Best pointed out that the company “offers a broad spectrum of risk products including energy, engineering, marine, accident and health, with property/energy to be the key line of business. SIIS plans to diversify its portfolio by steadily shifting to accident and health, casualty and engineering.”
In addition Best said “SIIS benefits from the management and underwriting expertise provided by its sister company, Starr International Insurance (Asia) Limited (SIIA). SIIS will primarily generate its business through the existing business network of SIIA.
As an offsetting factor Best singled out “execution risk associated with expanding operations.” The report explained that while “SIIS has established relationships with several participants in its target markets, its ability to build a profitable book of business and maintain market share will have to be proven over time.”
Best will continue to monitor SIIS’ performance against its stated business plan.
Source: A.M. Best