KUALA LUMPUR, Oct 8 (Bernama) -- AM Best has upgraded Singapore’s MS First Capital Insurance Ltd (MSFC) financial strength rating to A+ (Superior) from A (Excellent) and the long-term issuer credit rating to “aa-” (Superior) from “a+” (Excellent).
In a statement, the global credit rating agency said the outlook for both credit ratings (ratings) has been revised to stable from positive, while the ratings reflect MSFC’s robust balance sheet strength, strong operating performance, neutral business profile and appropriate enterprise risk management.
The ratings also incorporate rating enhancement from Mitsui Sumitomo Insurance Company Ltd, whose ultimate parent is MS&AD Insurance Group Holdings Inc (MS&AD).
The upgrade reflects improvements in MSFC’s balance sheet strength fundamentals, supported by a prudent capital management strategy.
The company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, remained at the strongest level at year-end 2024 and is expected to stay at that level over the medium term.
MSFC’s strong internal capital generation has driven considerable growth in capital size over the past decade, with shareholders’ equity rising to SG$1.4 billion at year-end 2024, from SG$501.1 million in 2014. (SG$1 = RM3.25)
The company maintains a conservative investment portfolio that consists mainly of cash, term deposits, and high-quality bonds, while its reliance on reinsurance for large-risk underwriting is mitigated by the good credit quality of its reinsurance panel.
AM Best also described MSFC’s operating performance as strong, supported by consistent operating results. In 2024, the company recorded a 14.2 per cent return on equity, driven by solid underwriting and investment results.
MSFC, a leading non-life insurer in Singapore, continues to benefit from its strong brand presence, diversified portfolio across Asia, and long-standing relationships with brokers, reinsurers, and affiliates within MS&AD.
-- BERNAMA
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