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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 19, 2018 12:06 PM (EDT)
A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Raffles Insurance Limited (Raffles) (Cayman Islands). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Raffle’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Raffles provides an insurance program to a select group of heterogeneous members in small to midsize industries, including manufacturing, contracting, distribution and others. Raffles has achieved excellent underwriting and overall earnings as a result of management’s rigorous underwriting guidelines maintained over many years, and the active involvement of each shareholder in aggressive loss control and claim management efforts. This has enabled Raffles to enhance its capitalization during this time. Weaker results registered in some years are somewhat mitigated by the retrospective rating features of the program, and the fact that members are assessed for and required to fund adverse development in incurred losses.
Despite a well-diversified investment portfolio, which consists of The Captive Investors Fund, Raffles’ concentration of assets is a partially offsetting rating factor. However, the company and its members maintain a certain amount of direct control over the fund, which is closely monitored and diversified. Variable operating performance reflects, in part, large dividends paid to members as a result of favorable underwriting experience in prior years.
A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive .
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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