Starr Indemnity & Liability Company (SILC), based in Dallas, has been assigned a financial strength rating of "A" (Excellent) and an issuer credit rating of "a" from A.M. Best Co.
SILC is an indirect wholly-owned subsidiary of Starr International Company, Inc. (SICO), a private investment holding company based in Panama.
A.M. Best said, "The initial ratings reflect SILC's sound business plan, solid risk-adjusted capitalization and its existing relationships with the various parties who will also be involved in the programs in which SILC intends to participate and the quality of those other participants."
The rating agency explained that SILC currently participates in quota-share reinsurance programs that focus on specialty commercial lines. A.M. Best noted that the programs are managed by specialized insurance agency subsidiaries of Starr Underwriting Agencies, LLC (SUA), a subsidiary of C.V. Starr & Co., Inc. SILC also expects to participate in several other programs later in 2008 and plans to distribute certain products directly, A.M. Best said.
"SILC benefits from the management, underwriting, claims handling, and loss control expertise provided by the SUA agencies," A.M. Best stated.
But the rating agency said SILC's strengths are "somewhat offset by the execution risk associated with expanding SILC's operations, the potential impact of continued soft market conditions on the business in which the company plans to participate, and the uncertainties surrounding outstanding legal issues involving SICO and certain members of its leadership team."
A.M. Best said the outlook for SILC's ratings is stable.
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