Best’s News & Research Service - October 28, 2022 12:41 PM (EDT)
AM Best Affirms Credit Ratings of Raffles Insurance Limited
- October 28, 2022 12:41 PM (EDT)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Raffles Insurance Limited (Raffles) (Cayman Islands). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Raffles’ balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Raffles is a group captive that provides insurance to a select group of nearly 450 heterogeneous small- to mid-size enterprises in a variety of industries, including manufacturing, contracting, distribution and others. Raffles has achieved excellent underwriting and overall earnings as a result of management’s adherence to sound risk selection and rigorous underwriting guidelines maintained over many years, in conjunction with the active involvement of each of its members in keeping with the group captive’s aggressive safety, loss control and claim management efforts. Solid underwriting profits supplemented by variable investment income has driven Raffles surplus growth over time. Weaker results registered in some years are mitigated somewhat by the retrospective rating features of the program, and the fact that members are assessed for and required to fund any adverse claims development if and when necessary.
Raffles’ investment portfolio is concentrated into a single fund that was established and managed, by its captive manager, Captive Resources. The Captive Investors Fund is comprised of a well-diversified portfolio of various traditional asset classes, which are directed by the group and in line with internal investment guidelines. Variable operating performance reflects, in part, large dividends paid to members as a result of favorable underwriting experience in prior years.
AM 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 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.