MS First Capital Insurance’s underwriting drives consistent profitability

Shareholders’ equity, which reached $900m (S$1.2b) in 2023.

MS First Capital Insurance Limited (MSFC) in Singapore has improved its balance sheet strength, supported by prudent capital management and robust stress-testing capabilities, AM Best said. 

The company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), remained at the strongest level as of year-end 2023, a position AM Best expects to sustain in the medium term. 

Over the past decade, strong internal capital generation has driven significant growth in shareholders’ equity, which reached $900m (S$1.2b) in 2023, up from $308m (S$411.8m) in 2013.  

MSFC’s investment portfolio remains conservative, comprising primarily cash, term deposits, and high-quality bonds. 

However, the company’s reliance on reinsurance for managing large underwriting risks and catastrophe exposure is a noted factor. This risk is partially mitigated by the credit quality of its reinsurance partners.  

The company’s operating performance is assessed as strong, with a return-on-equity (ROE) ratio of 12.1% in 2023.

This performance was driven by stable underwriting returns and positive investment income. MSFC's disciplined underwriting and technical expertise across its core markets have consistently contributed to robust profitability.