CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 30, 2024 09:51 AM (EDT)
AM Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of “bbb-” (Good) to Star Mutual Risk Retention Group, Inc. (Star) (Knoxville, TN). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Star’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The balance sheet strength assessment considers Star’s strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), augmented by its surplus growth since inception (and through its projected near term) and supported through membership contributions. Management adheres to a conservative investment philosophy and has an appropriate reinsurance program in place supporting modest retentions. The company’s operating results align with adequately rated companies within AM Best’s commercial auto liability composite. The company has generated modest underwriting losses in the early stages of its lifecycle, reflecting moderate volatility in both its loss and expense ratios. Star is a mutual risk retention group, providing monoline commercial auto liability coverage for its members, focusing on small to medium fleet operators. Risk management and loss prevention are prioritized and embedded into the company’s in-house underwriting system platform designed for improving risk selection and to reflect the company’s risk appetite and risk tolerances. Risk mitigation practices are also shared among its members as loss prevention and mitigation efforts.
The stable outlooks reflect AM Best's expectation that Star will maintain its adequate balance sheet strength and adequate operating performance, while prudently growing its premium book and its surplus organically and through its new member 'per unit' contributions.
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.