KUALA LUMPUR, March 15 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A (excellent) and Long-Term Issuer Credit Rating of ‘a’ of Starr Property & Casualty Insurance (China) Company, Limited (Starr China).
The global insurance rating company said the outlook of the insurance company credit ratings remained stable.
The ratings reflect Starr China’s balance sheet strength, which AM Best classified as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Moreover, the ratings also reflect the company’s high level of integration with the wider Starr group and support received from capital management, underwriting expertise, inward business, reinsurance and risk oversight.
AM Best expects the company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, to remain at a robust level over the short to intermediate term.
Meanwhile, AM Best has also revised its assessment of Starr China’s operating performance to adequate from marginal.
This is because the company demonstrated a successful implementation of its turnaround strategy in building a non-auto portfolio and reported an improving trend in its underwriting profit over the past five years.
Offsetting rating factors include the company’s limited market position amid the broadly soft and highly competitive Chinese non-life insurance market; exposure to volatility in claims experience arising from business expansion in casualty and financial lines; challenges in product innovation; and, the strengthening of its distribution network in the accident and health markets.
-- BERNAMA
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