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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 04, 2020 10:55 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of RoyalStar Assurance Ltd. (RSA) (Nassau, Bahamas). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect RSA’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
RSA’s strong operating results are supported by favorable underwriting performance, especially in non-catastrophe years, and steady levels of investment income. Positive earnings have enabled the company to continue to maintain its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Under the direction of its experienced management team, RSA provides personal and commercial lines coverages throughout the Bahamas, the Cayman Islands, the Turks and Caicos Islands, the U.S. Virgin Islands and the British Virgin Islands.
These strengths are offset partially by the geographic concentration of RSA’s business in the Bahamas, exposure to weather-related catastrophe events and its dependence on reinsurance to mitigate losses and protect its surplus, as was seen in 2019 when Hurricane Dorian negatively impacted results. The company mitigates much of its catastrophe exposure through prudent risk management planning, which includes minimizing coverage written in flood and storm surge areas, along with its comprehensive reinsurance program placed with a panel of high-quality reinsurers.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.