Starr Chile receives AM Best credit ratings with positive outlook

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Starr Chile receives AM Best rating

Highlights

AM Best assigned Starr International Seguros Generales S.A. a Financial Strength Rating of A and a Long-Term Issuer Credit Rating of 'a+', both with a positive outlook.
Starr Chile reported a capital base of CLP 24.4 billion (USD 24.7 million) and risk-adjusted capitalization at the strongest level under Best’s Capital Adequacy Ratio.
Positive rating actions are possible if the group’s operating performance improves, while negative action could follow from deteriorating underwriting or adverse reserve developments.

Rating assignment and business profile

As reported by AM Best, Starr International Seguros Generales S.A. has been assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a+" (Excellent), both with a positive outlook.

Starr Chile, based in Santiago, is an affiliate of Starr International Group, which AM Best assesses on a consolidated basis as having the strongest balance sheet strength, along with adequate operating performance, a favorable business profile and appropriate enterprise risk management. The positive outlook reflects improved underwriting and operating trends for the wider group.

Established in 2016 as part of the group’s expansion in Chile, the insurer focuses on large commercial property risks. Based on gross premiums, its portfolio consists of technical lines at 77%, financial lines at 9%, marine at 8% and casualty at 6%, with distribution handled through a selected group of agents and brokers.

Capital position and potential rating drivers

AM Best says Starr Chile has a capital base of CLP 24.4 billion, equivalent to USD 24.7 million, and risk-adjusted capitalization at the strongest level under Best’s Capital Adequacy Ratio. Growth in capital and surplus in recent years is driven by profitable results that are fully reinvested over the last five years, while the balance sheet is supported by a reinsurance structure placed with a highly rated panel.

The ratings agency also points to the insurer’s experienced management team and the Starr brand as supportive factors for premium growth. It says the company has successfully implemented the group’s business model since inception and has posted profitable results, with combined ratios remaining within premium sufficiency levels partly due to reinsurance commissions.

AM Best says positive rating actions could follow if the group’s operating performance continues to improve against peers. Negative action could result from sustained deterioration in underwriting trends, a material adverse reserve development charge that weakens returns relative to peers, or a deterioration in AM Best’s view of the holding company.

Geopolitical tensions and elevated fiscal spending are increasing sovereign borrowing risks as global funding costs remain high, our earlier coverage noted. It highlighted that persistent shocks can erode fiscal headroom—especially in emerging and frontier markets where interest-service burdens are heavier—while energy and food price spikes add to inflation and pressure credit outlooks.

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