AM Best Projects Stable Earnings for Starr Int’l Insurance

Starr International Insurance (Thailand) Public Company Limited (SIIT) has a promising medium-term outlook. AM Best assesses its balance sheet strength as strong and anticipates it will stay robust. This is set to be backed by its risk-adjusted capitalisation at the strongest level within the Best’s Capital Adequacy Ratio (BCAR). Despite having a relatively small absolute capital base, SIIT benefits from financial flexibility and reinsurance support from the Starr Group, bolstering its resilience.

The company has adopted a conservative investment strategy, mainly funneling funds into high-quality bonds and cash deposits. While it depends significantly on reinsurance to boost underwriting capacity and handle catastrophe and large-risk exposures, the use of well-rated reinsurance counterparties helps mitigate associated risks. Moreover, enhanced underwriting outcomes, cost efficiencies, and favorable reinsurance commissions have fortified its earnings.

Although investment returns are modest for SIIT, they do provide stable income. Looking ahead, AM Best projects that future earnings will continue to receive support from solid underwriting performance and steady investment income. This positions the company well to navigate the insurance landscape and maintain its stability in the market.

Related topics

• Lonpac Expected to Hold 7% of Malaysia’s Market
• What Business Risks Insurers Need to Be Aware of This 2025
• Malaysia’s Fin Inst. Governance: Costs, Boards, Diversity & More