AM Best upgrades Singapore-based MSFC Issuer Credit Rating

KUALA LUMPUR, Sept 21 -- AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to ‘a+’ from ‘a’ and affirmed the Financial Strength Rating of A (Excellent) of MS First Capital Insurance Limited (MSFC) Singapore.

In a statement, the global credit rating agency said the outlook of these Credit Ratings (ratings) was stable.

These ratings reflect MSFC’s balance sheet strength, which AM Best categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the implicit support from the company’s ultimate parent, MS&AD Insurance Group Holdings Inc (MS&AD).

The Long-Term ICR upgrade reflects the increased level of implicit support that MSFC receives from its parent. In particular, the company has assumed more premium from MS&AD’s affiliates and there has been closer integration between MSFC and the group in terms of governance, management structure, as well as in key business functions. The company’s risk-adjusted capitalisation remained at the strongest level in 2019, as measured by Best’s Capital Adequacy Ratio. MSFC’s balance sheet strength is also supported by the company’s low underwriting leverage and very conservative investment portfolio, which is composed mostly of cash, deposits and high-grade bonds. MSFC is a dominant non-life insurer in Singapore with a leading market position in fire and marine business. More details on the ratings at www.ambest.com -- BERNAMA