KUALA LUMPUR, Oct 1 (Bernama) -- A.M. Best has affirmed the Financial Strength Rating of A (excellent) and the Long-Term Issuer Credit Rating of ‘a’ of MS First Capital Insurance Limited (MSFC) Singapore and the outlook of these ratings is stable.
The ratings reflect MSFC’s balance sheet strength, which A.M. Best classifies as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
A.M. Best in a statement said that the insurance company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains solid.
Capital and surplus has also increased steadily through growth in retained earnings while underwriting leverage remains low. MSFC’s investment portfolio has become more conservative through a reallocation of its equity exposure to fixed income.
According to the statement, in terms of underwriting performance, the company has performed well compared with its peers, benefiting from favorable reinsurance profit commission income.
The company also has been adept at seeking opportunities abroad where it generates approximately half of its gross premiums, providing some geographic diversification.
An offsetting rating factor is the continued price erosion in certain business lines and the company responded by reducing premiums but has so far been able to keep its underwriting margins at a strong level.
Additionally, while MSFC continues to benefit from the strengths of its key management team, institutionalizing these strengths could enhance the company’s growth potential in the long run. More details on www.ambest.com
--BERNAMA
--BERNAMA
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