OLDWICK, N.J.--(BUSINESS WIRE)--AM 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 balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
RSA’s favorable underwriting performance, especially in non-catastrophe years, supported by steady levels of investment income, continues to contribute to RSA’s strong operating results. Positive earnings have enabled RSA to continue to maintain risk-adjusted capitalization assessed at the strongest level. Under the direction of its experienced management team, RSA provides personal and commercial lines coverages throughout the Bahamas, the Cayman Islands, the Turks and Caicos Islands and the British Virgin 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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