AM Best forecasts steady earnings for Starr International Insurance

Whilst investment returns remain modest, they contribute stable income. 

Starr International Insurance (Thailand) Public Company Limited’s (SIIT) balance sheet strength, assessed as strong by AM Best, is expected to remain robust over the medium term.

It will be supported by its risk-adjusted capitalisation at the strongest level under Best’s Capital Adequacy Ratio (BCAR). 

Whilst SIIT operates with a relatively small absolute capital base, its financial flexibility and reinsurance support from Starr Group bolster its resilience.  

The company has maintained a conservative investment strategy, predominantly allocating funds to high-quality bonds and cash deposits, the credit agency said.

However, it relies heavily on reinsurance to enhance underwriting capacity and manage catastrophe and large-risk exposures. This reliance is mitigated by the use of well-rated reinsurance counterparties.  

Enhanced underwriting results, cost efficiencies, and favourable reinsurance commissions have strengthened the company’s earnings. 

Whilst investment returns remain modest, they contribute stable income. 

AM Best expects future earnings to remain supported by robust underwriting performance and steady investment income.