Best’s News & Research Service - August 28, 2024 09:48 AM (EDT)
AM Best Upgrades Credit Ratings of Core Specialty Insurance Holdings, Inc. Subsidiaries
- August 28, 2024 09:48 AM (EDT)
//BestWire// - AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of StarStone Specialty Insurance Company and StarStone National Insurance Company, both headquartered in Cincinnati, OH. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. At the same time, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” (Excellent) from “a-” (Excellent) of Lancer Insurance Company and Lancer Insurance Company of New Jersey both headquartered in Long Beach, NY. The outlook of these ratings is stable.
Concurrently, AM Best has upgraded the FSR to A (Excellent) from B++ (Good) and the Long-Term ICR to “a” (Excellent) from “bbb+´(Good) of American Surety Company (Indianapolis, IN). The outlook of these ratings has been revised to stable from positive. Collectively these companies are subsidiaries of Core Specialty Insurance Holdings, Inc. (Core Specialty). In addition, AM Best has removed from under review with developing implications and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Standard Life and Accident Insurance Company (SLAICO) (League City, TX) an affiliate of Core Specialty. The outlook assigned to these ratings is stable.
The ratings of Core Specialty reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect continued improvement in Core Specialty’s product and geographical diversification through acquisitions and organic growth initiatives. Since its formation in 2020, Core Specialty has grown substantially and increased market share in various key segments, all while maintaining risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and producing profitable results. While some level of operational risk exists with rapid expansion, Core Specialty has somewhat mitigated this risk through limiting the number of legacy reserves acquired and acquiring seasoned books of business.
The ratings of SLAICO reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM.
SLAICO is anticipated to maintain very low levels of total risk overall. This will support Core Specialty’s medical stop loss division although most of the business will be heavily reinsured. AM Best will continue to monitor SLAICO going forward, as it supports the greater Core Specialty strategy.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.