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FOR IMMEDIATE RELEASE
LONDON - DECEMBER 16, 2020 09:54 AM (EST)
AM Best has maintained the under review with negative implications status for the Financial Strength Ratings (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of StarStone Insurance Bermuda Limited (SIBL) (Bermuda) and StarStone Insurance SE (SISE) (Liechtenstein).
These Credit Rating (rating) actions follow the re-capitalisation by third parties of StarStone Specialty Insurance Company (SSIC) (Wilmington, DE) and StarStone National Insurance Company (SNIC) (Wilmington, DE) on 30 November 2020, which diluted SIBL’s majority stakes in the companies to a minority share. In addition, SIBL has agreed to sell StarStone Underwriting Limited, including the right to operate Syndicate 1301, although it will retain and run off the syndicate’s 2020 and prior years of account. SIBL and SISE are expected to be run-off in an orderly manner.
While AM Best expects Enstar Group Limited to support the runoff of SIBL and SISE, there is uncertainty surrounding the risk-adjusted capitalisation of the companies following the restructuring of the group. In addition, there may be negative pressure on the business profile assessments of these companies, given the run-off nature of the remaining business.
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 specialising 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.