OLDWICK, N.J.--(BUSINESS WIRE)--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 the company’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
RSA 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 strongest risk-adjusted capitalization. Under the direction of its experienced management team with local market expertise, RSA provides personal and commercial lines coverage throughout the Bahamas, the Cayman Islands, and Turks and Caicos Islands.
These strengths are partially offset by the geographic concentration of RSA’s business in the Bahamas, the company’s exposure to weather-related catastrophe events and its dependence on reinsurance to mitigate losses and protect its surplus. 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 its comprehensive reinsurance program placed with a panel of high-quality reinsurers.
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