HONG KONG--(BUSINESS WIRE)--Please replace the release dated February 21, 2012 with the following corrected version due to multiple revisions.
The corrected release reads:
A.M. BEST ASSIGNS RATINGS TO STARR INTERNATIONAL INSURANCE (SINGAPORE) PTE. LTD.
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) (Singapore), a wholly owned subsidiary of Starr Insurance & Reinsurance Limited (SIRL) (Bermuda) and an indirect wholly owned subsidiary of Starr International Company, Inc. (Starr International) (Panama), 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. The ratings also acknowledge SIIS’ experienced management team, which has an excellent track record in the insurance markets. SIIS has received an in-principal approval letter from the Monetary Authority of Singapore (MAS) on October 20, 2011 and will start writing business once the company receives registration to conduct general insurance business from the MAS.
SIIS will offer 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. SIIS will benefit 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.
Offsetting rating factors include the execution risk associated with expanding operations. 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. Accordingly, A.M. Best will closely monitor SIIS’ performance against its stated business plan.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Understanding Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; “Rating Members of Insurance Groups”; “Rating New Company Formations”; “Assessing Country Risk”; “Risk Management and the Rating Process for Insurance Companies.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.