AM Best has reaffirmed the financial strength rating (FSR) and long-term issuer credit ratings (Long-Term ICR) of Starr International Company’s (SICO) insurance and reinsurance subsidiaries.
SICO, a private investment holding company based in Switzerland, saw its subsidiaries maintain an FSR of A (Excellent) and a Long-Term ICR of “a+” (Excellent), with a stable outlook on these ratings. The reaffirmed ratings apply to members of the Starr International Group (SIG) and Starr Insurance & Reinsurance Limited (SIRL), headquartered in Bermuda.
The ratings for SIG’s members, including Starr Indemnity & Liability Company, Starr Surplus Lines Insurance Company, and Starr Specialty Insurance Company, all based in Dallas, TX, acknowledge their robust balance sheet strength, assessed as strongest by AM Best. Additionally, these ratings consider their adequate operating performance, favorable business profile, and appropriate enterprise risk management (ERM).
Similarly, the ratings for SIRL and its affiliates reflect their substantial balance sheet strength and adequate operational performance. SIRL’s members include various international entities like Starr Property & Casualty Insurance (China) Company, Limited; Starr International Insurance (Asia) Limited (Hong Kong); Starr International Insurance (Singapore) Pte. Ltd; Starr International (Europe) Limited (United Kingdom); Starr International Insurance (Switzerland) AG (Switzerland); and Starr Europe Insurance Limited (Malta).
Both SIG and SIRL are recognized for their well-diversified international operations and product exposures. They have demonstrated strong growth trends in key markets, with underwriting results aligning with the commercial casualty composite’s five-year average combined ratio. AM Best notes that both groups have maintained the highest levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), bolstered by favorable liquidity metrics.
The groups are also noted for their higher-than-average investment in alternative asset classes compared to their peers. This includes investments in private equity and debt funds, real estate funds, and hedge funds. These investments are managed by affiliated investment management companies employing external asset managers. This strategic approach to asset allocation has contributed to the groups’ strong financial profiles, as recognized in these latest ratings by AM Best.
In other ratings-related developments, AM Best has maintained the ratings of specialty re/insurer’s SiriusPoint Ltd’s operating subsidiaries following reports of CMIG International Holding Pte Ltd, the parent company of SiriusPoint’s principal shareholder CM Bermuda Ltd, entering private receivership in Singapore.
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