AM Best Upgrades Credit Ratings of Starr International Insurance (Thailand) Public Company Limited

SINGAPORE--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Starr International Insurance (Thailand) Public Company Limited (SIIT) (Thailand). The outlooks of these Credit Ratings (ratings) have been revised to stable from positive.

The ratings reflect SIIT’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. In addition, SIIT benefits from rating enhancement arising from the implicit and explicit support provided by Starr International Company, Inc. (Starr Group).

The upgrading of the ratings reflects an improvement in SIIT’s operating performance, supported by the successful execution of its business transformation initiatives in recent years. The company’s robust underwriting performance benefits from an intra-group reinsurance arrangement, favourable reinsurance commissions and good underwriting discipline, which remain the key drivers of technical profitability. Investment returns, mainly arising from interest income remains a small, but stable contribution to the overall earnings. As of 30 September 2025, the company reported a net profit of THB 136.4 million (USD 4 million). Prospective earnings are expected to be supported by robust underwriting performance and stable investment income.

SIIT’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level over the medium term. Although SIIT has a small absolute capital base, it benefits from good financial flexibility and reinsurance support provided by Starr Group. The company has a conservative investment portfolio comprised principally of high-quality bonds and cash deposits. However, SIIT has a high reliance on reinsurance to increase its underwriting capacity and to manage its exposure to catastrophe accumulations and large single risks, although credit risk is mitigated by the use of well-rated reinsurance counterparties.

AM Best assesses SIIT’s business profile as limited, reflecting its position as a small-size non-life insurer in Thailand. The company is considered important to the group in terms of accessing the Thailand insurance market and enlarging its presence in Asia. SIIT’s underwriting portfolio is concentrated towards construction, engineering, and energy lines. The company benefits from the group’s technical expertise in underwriting these lines, with the majority of its business originating from Thailand.

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

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