OLDWICK, N.J. - (Business Wire) A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of RoyalStar Assurance Limited (RSA) (Nassau, Bahamas). The outlook for both ratings is stable. The ratings reflect RSA’s solid risk-adjusted capitalization, favorable operating results and strong reinsurance program. The company is well established in its various markets with a management team that is experienced in dealing with market cycles. These positive characteristics are supported by RSA’s disciplined approach to underwriting, capital maintenance and risk management.
RSA provides coverage for property, property catastrophe, liability, fidelity, marine and motor lines of business. Although primarily servicing the Bahamas, the company also provides products in the Cayman Islands, Turks and Caicos.
These positive factors are somewhat offset by RSA’s geographic concentration and exposure to hurricane activity. However, this concern is mitigated by its strong reinsurance program with prominent reinsurance companies. The program, which protects against multiple events, reduces RSA’s net probable maximum loss to a manageable level, but substantially increases the cost of operations. Additionally, RSA operates in active markets with competition from both indigenous and outside companies seeking market share.
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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts
Peter Dickey, 908-439-2200, ext. 5053
peter.dickey@ambest.com
or Robert DeRose, 908-439-2200, ext 5453
robert.derose@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
