A.M. Best Affirms Credit Ratings of Starr Property & Casualty Insurance (China) Company, Limited
The rating affirmations reflect Starr China’s supportive risk-adjusted capitalization under a strengthened surplus position, and an improved operating expense ratio. In addition,
Over the past few years,
An offsetting rating factor is the challenge the company faces in achieving its business plan under China’s competitive market conditions. Moreover, the stop-loss reinsurance arrangement with SIRL was terminated in 2016. Another offsetting rating factor is the company’s increasing exposure to lower-frequency and potentially high-severity risks, located domestically and abroad, due to the change in portfolio mix to more commercial business, which may generate greater volatility in its underwriting results going forward.
While positive rating actions are not likely in the near term, negative rating actions could result from a continued and material adverse deviation from the company’s business plan, a significant decline in the risk-adjusted capitalization, or a reduced level of support provided by SIRL or SICO.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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A.M. Best Affirms Credit Ratings of Members of Health Net Group; Withdraws Issuer Credit Rating of Health Net, Inc.
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