A.M. Best Affirms Ratings of First Capital Insurance Limited

SINGAPORE--()--A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of First Capital Insurance Limited (First Capital) (Singapore). The outlook for both ratings remains stable.

The ratings consider First Capital’s favorable baseline capitalization, strong operating performance and good business profile. Capital leverage measures have trended downward with consistent capital growth. Management has been effective in profitably diversifying First Capital’s sources of underwriting results, while growing premiums and results. This reflects the strength of the management’s business network and expertise in identifying underwriting opportunities across Asia and lines of business. Profitability ratios are significantly supported by favorable reinsurance commission income and First Capital’s large investment portfolio.

Offsetting rating factors include potential volatility in First Capital’s risk-adjusted capitalization following a major catastrophe event. While the company’s capital position would be protected by reinsurance, high reinsurance asset leverage could cause a significant drop in risk-adjusted capitalization. Finally, while First Capital has benefitted from the strengths of its key management, institutionalizing these strengths could help to reduce the company’s key person risks.

The company is well-positioned at its current rating level.

A higher than expected increase in reinsurance asset risk following one or multiple large catastrophe events could result in negative rating pressure.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Chi Yeung Lok, +65 6589 8400, ext. 211
Senior Financial Analyst
chi-yeung.lok@ambest.com
or
Moungmo Lee, +65 6589 8400, ext. 210
Managing Director, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Chi Yeung Lok, +65 6589 8400, ext. 211
Senior Financial Analyst
chi-yeung.lok@ambest.com
or
Moungmo Lee, +65 6589 8400, ext. 210
Managing Director, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com