A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and the issuer credit rating of “a-“ of Starr Property & Casualty Insurance.
The ratings reflect Starr China’s improving level of risk-adjusted capitalisation, its managed investment portfolio and its management team in commercial lines and speciality risks underwriting.
In addition, the ratings also benefit from the business and operational support of Starr International Company (SICO) and its insurance subsidiaries and the capital commitment from Starr Insurance & Reinsurance, one of the affiliated companies within SICO, which is a 20 percent shareholder of Starr China.
Starr China’s risk-adjusted capitalisation improved in 2014 as a result of
moderate growth in its capital and surplus, reduction in underwriting
leverage and moderate investment risk profile.
The reduction in Starr China’s underwriting leverage was due to the company’s strategy to reduce the size of its motor portfolio, which has delivered unfavourable underwriting results in recent years.
Going forward, Starr China will target growth in commercial lines to achieve a diversified portfolio while maintaining moderate underwriting leverage.
