Published:
A.M. Best Affirms Ratings of RoyalStar Assurance Limited
OLDWICK, N.J. - (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and issuer credit rating of "a-" of RoyalStar Assurance
Limited (RSA) (Nassau, Bahamas). The outlook for both ratings is
stable.
The ratings reflect RSA's solid risk-adjusted capitalization, favorable
operating results and strong reinsurance program. The company is well
established in its various markets with a management team that is
experienced in dealing with market cycles. These positive
characteristics are supported by RSA's disciplined approach to
underwriting, capital maintenance and risk management.
RSA provides coverage for property, property catastrophe, liability,
fidelity, marine and motor lines of business. Although primarily
servicing the Bahamas, the company also provides products in the Cayman
Islands, Turks and Caicos.
These positive factors are somewhat offset by RSA's geographic
concentration and exposure to hurricane activity. However, this concern
is mitigated by its strong reinsurance program with prominent
reinsurance companies. The program, which protects against multiple
events, reduces RSA's net probable maximum loss to a manageable level,
but substantially increases the cost of operations. Additionally, RSA
operates in active markets with competition from both indigenous and
outside companies seeking market share.
For Best's Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including
any additional methodologies and factors that may have been considered,
can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts
Peter Dickey,
908-439-2200, ext. 5053
peter.dickey@ambest.com
or
Robert DeRose, 908-439-2200, ext 5453
robert.derose@ambest.com
or
Public
Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
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