Singapore: AM Best has upgraded Singapore’s MS First Capital Insurance Ltd (MSFC) financial strength rating to A+ (Superior) from A (Excellent) and the long-term issuer credit rating to ‘aa-‘ (Superior) from ‘a+’ (Excellent).

According to BERNAMA News Agency, the global credit rating agency stated that the outlook for both credit ratings has been revised to stable from positive. These ratings reflect MSFC’s robust balance sheet strength, strong operating performance, neutral business profile, and appropriate enterprise risk management. The ratings also include enhancement from Mitsui Sumitomo Insurance Company Ltd, whose ultimate parent is MS and AD Insurance Group Holdings Inc.

The upgrade signifies improvements in MSFC’s balance sheet strength fundamentals, underscored by a prudent capital management strategy. The company’s risk-adjusted capitalisation, measured by Best’s Capital Adequacy Ratio, remained at the strongest level at year-end 2024 and is anticipated to remain strong over the medium term.

MSFC has demonstrated strong internal capital generation, resulting in substantial growth in capital size over the past decade. Shareholders’ equity rose to SG$1.4 billion at year-end 2024, up from SG$501.1 million in 2014. The company maintains a conservative investment portfolio primarily consisting of cash, term deposits, and high-quality bonds. Its reliance on reinsurance for large-risk underwriting is mitigated by the good credit quality of its reinsurance panel.

AM Best also noted MSFC’s strong operating performance, supported by consistent operating results. In 2024, the company achieved a 14.2 per cent return on equity, attributed to solid underwriting and investment results. As a leading non-life insurer in Singapore, MSFC benefits from a strong brand presence, a diversified portfolio across Asia, and long-standing relationships with brokers, reinsurers, and affiliates within MS and AD.