Best’s News & Research Service - March 07, 2025 09:14 AM (EST)
AM Best Assigns Credit Ratings to Cavello Bay Reinsurance Limited
- March 07, 2025 09:14 AM (EST)
//BestWire// - AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” (Excellent) to Cavello Bay Reinsurance Limited (Cavello Bay) (Bermuda), a subsidiary of Enstar Group Limited (Enstar) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Cavello Bay’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
Cavello Bay is the lead operating entity of Enstar, comprising the majority of the group’s assets and liabilities. Enstar has an established presence in the run-off market with a long track record of effectively managing claims in complicated lines of business. In 2024, Enstar announced it was being acquired by Sixth Street. As part of the acquisition, it is anticipated that Enstar’s current business model will remain largely unchanged. AM Best has reviewed Enstar’s prospective capital actions and believes its balance sheet strength should remain at the current level throughout the close of the transaction and the remainder of 2025. Should Enstar’s balance sheet strength deviate materially from its provided plans, AM Best would revise the ratings of Cavello Bay at that time.
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.