Singapore’s MS First Capital Earns Superior Credit Ratings - AM Best

KUALA LUMPUR, Oct 8 (Bernama) -- Global credit rating agency, AM Best has affirmed Singapore’s MS First Capital Insurance Limited (MSFC) financial strength rating of A+ (Superior) and the long-term issuer credit rating of “aa-” (Superior).

The outlook on the credit ratings (ratings) is stable, reflecting MSFC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

AM Best in a statement said the ratings also factor in rating enhancement from its ultimate parent, MS&AD Insurance Group Holdings Inc (MS&AD).

MSFC’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is expected to remain at the strongest level over the medium term.

The company has demonstrated prudent capital management, supporting consistent internal capital generation over the years. Its investment portfolio is viewed to be of low risk, consisting mainly of cash, term deposits and high-quality bonds.

MSFC, a dominant non-life insurer in Singapore, maintains a high reliance on reinsurance to support its underwriting of large risks and to manage its accumulation of catastrophe exposures, although credit risk is partially mitigated by the good credit quality of its reinsurance panel.

The credit rating agency views MSFC’s operating performance as strong, as evidenced by its consistently favourable operating results. The company has consistently generated robust underwriting returns, supported by underwriting discipline and technical expertise in core lines of business across different geographies.

Underwriting results improved in 2025, mainly driven by more favourable loss experience. Investment results, arising mainly from interest income, also continued to contribute positively to the company’s overall profitability.

MSFC’s business profile is assessed as neutral. The company has strong branding and technical expertise, with a well-diversified underwriting portfolio by geography and a large volume of overseas business sourced from various markets within Asia. It also maintains long-standing relationships with brokers and reinsurers, supporting its access to quality business, while continuing to receive business referrals from MS&AD affiliates.

-- BERNAMA