AM Best raised the outlook for Swiss private investment holding Starr International Company, Inc.’s insurance subsidiary to positive from stable and reiterated its A (Excellent) financial strength rating and “a+” (Excellent) long-term issuer credit rating.
The rating action applies to the member companies of Starr International Group of New York and Starr Insurance & Reinsurance Company Limited of Bermuda (collectively, Starr).
AM Best recommends that ratings of Starr International group member companies are based on balance sheet strength assessed at the strongest level. The agency also considers adequate operating performance, sound business conditions and appropriate enterprise risk management capabilities.
Similarly, AM Best said the ratings of Starr Insurance & Reinsurance Ltd. and its subsidiaries are supported by an assessment of strongest balance sheet strength, good operating performance, favorable business position and appropriate enterprise risk management.
In explaining the improving outlook, AM Best pointed to stronger underwriting and operating trends at Starr International’s subsidiaries.
The group significantly reduced its net underwriting expense base and delivered more consistent underwriting results, delivering significant performance improvement compared to previous years. AM Best further noted that Starr is planning to acquire the IQUW Group, a move aimed at enhancing its product range in the London market and internationally.
Given IQUW’s strong track record, AM Best expects the transaction to contribute positively to future rating considerations through greater diversification and scale within the broader organization.
AM Best has affirmed the following Starr International Group entities’ financial strength ratings of A (Excellent), long-term issuer credit ratings of “a+” (Excellent), and current positive outlook for the following entities: Starr Indemnity Liability Company, Starr Surplus Insurance Company and Starr Specialty Insurance Company.
The following Starr Insurance & Reinsurance Ltd entities also received the same rating, with the outlook revised from stable to positive: Starr Property & Casualty (China) Ltd; Starr International Insurance (Asia) Ltd; Starr International Insurance (Singapore) Pty Ltd; Starr International Insurance (Singapore) Pte Ltd; Starr International (Europe) Ltd; Starr International Insurance (Switzerland) AG; and Starr Insurance Europe Ltd.
