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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 15, 2017 09:38 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of RoyalStar Assurance Limited (RSA) (Nassau, Bahamas). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect RSA’s supportive risk-adjusted capitalization, strong operating performance and its established presence in the Caribbean market. The company continues to generate overall earnings, which are derived from its strong underwriting performance and steady levels of investment income, especially in non-catastrophe years. Positive earnings have enabled RSA to continue to maintain more than adequate risk-adjusted capitalization. Under the direction of an experienced and knowledgeable management team with local market expertise, RSA provides personal and commercial lines coverage throughout the Bahamas, the Cayman Islands, and Turks and Caicos Islands.
Partially offsetting these positive rating factors are its geographic concentration in the Bahamas, the company’s exposure to weather-related catastrophe events and its dependence on reinsurance to mitigate losses and protect its surplus. Additionally, Caribbean insurance markets remain very competitive as soft market conditions persist. RSA mitigates much of its catastrophe exposure through prudent risk management planning, which includes minimizing coverage written in flood and storm surge areas, along with a comprehensive reinsurance program placed with a panel of high-quality reinsurers.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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