AM BEST AFFIRMS SINGAPORE’S MS FIRST CAPITAL INSURANCE CREDIT RATINGS AS EXCELLENT

KUALA LUMPUR, Oct 30 (Bernama) -- Global credit rating agency, AM Best has affirmed Singapore’s MS First Capital Insurance Limited (MSFC) Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent).

AM Best in a statement said the credit ratings (ratings) which have a stable outlook, reflected MSFC’s balance sheet strength, was assessed as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also factor in rating enhancement from Mitsui Sumitomo Insurance Company Limited (MSI), for whom the ultimate parent is MS&AD Insurance Group Holdings Inc (MS&AD).

MSFC’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio.

Capital adequacy remains supportive of the company’s planned business growth and is sustained by consistent internal capital generation, in which AM Best views MSFC’s investment portfolio as conservative that comprises mainly cash, term deposits and high-quality bonds.

The rating agency views the company’s operating performance as strong, evidenced by a five-year average combined ratio of 55.6 per cent and a return-on-equity ratio of 10.6 per cent (2018-2022).

MSFC has consistently generated robust underwriting results, as supported by strong underwriting discipline and in-depth expertise in core lines of business and markets, while its net underwriting margins have consistently benefitted from low management expenses and high reinsurance commission income relative to net earned premium.

The company’s investment results, arising mainly from interest income, continue to contribute positively to the overall earnings and AM Best expects MSFC to continue delivering a strong operating performance, supported by favourable underwriting and investment results.

With its business profile assessed as neutral, MSFC is a leading non-life insurer in Singapore, supported by its strong brand and technical expertise, in addition to its well-diversified by geography underwriting portfolio.

-- BERNAMA