AM Best confirms the credit ratings of StarStone Insurance Bermuda Limited and its subsidiary – InsuranceNewsNet

LONDON—(BUSINESS WIRE)–
AM Best has affirmed the financial stability rating of A- (excellent) and the issuer’s long-term credit rating of ‘a-‘ (excellent) from StarStone Insurance Bermuda Limited (SIBL) (Bermuda) and StarStone Insurance SE (SISE) (Liechtenstein). The outlook for these credit ratings (ratings) is stable.

SIBL’s ratings reflect the strength of its balance sheet, which AM Best rates as very strong, as well as its marginal operating results, limited business profile and adequate enterprise risk management (ERM). SISE’s ratings reflect the strength of its balance sheet, which AM Best rates as very strong, as well as its marginal operating performance, limited business profile and adequate ERM. Both companies’ ratings benefit from the support of their ultimate parent, Enstar Group Limited (Enstar), which has experience in providing financial assistance and operational support.

Both companies stopped recording new business July 2020and since then SIBL has got rid of it US subsidiaries. SIBL underwrites the liabilities of the businesses written before the release date by these companies through reinsurance arrangements. A wholly-owned subsidiary of SIBL also ceased its participation in Lloyd’s Syndicate 1301 at the end of 2020, but retained the business’ obligations underwritten in 2020 and previous Lloyd’s underwriting years.

SIBL and SISE balance sheet strength estimates are based on risk-adjusted capitalization at the strongest level as measured by Best’s year-end capital adequacy ratio (BCAR) December 31, 2021. AM Best expects risk-adjusted capitalization for both companies to remain at their strongest level over the medium term, based on their exit plans.

SIBL’s balance sheet strength is supported by a relatively conservative investment portfolio and significant reinsurance protection which includes loss portfolio transfer (LPT) underwritten by Enstar group entities. Although historical reserve volatility is an offsetting factor, the company demonstrated positive reserve development on a gross and net basis in 2020 and on a gross basis in 2021, where a portion of the positive development was ceded to Enstar Group affiliates via LPT. SISE’s balance sheet strength is supported by a conservative investment portfolio and low underwriting leverage due to high level of cessions to parent SIBL.

The companies’ marginal operating results reflect their poor historical performance. Their limited business profile estimates account for their significantly reduced scale as a result of corporate disposals and the decision to stop generating new business.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information related to the release and related disclosures, including details of the agency responsible for issuing each of the individual ratings mentioned in this release, please see AM Best’s web page for recent rating activities. For further information on the use and limitations of credit score opinions, please see the Best Credit Score Guide. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, please see the Guide to the Proper Use of Best’s Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquarters in United Statesthe company develops business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Marving Lopez
Associate Financial Analyst

+44 20 7397 4389

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Will Keane-Tomlinson
Associate Director, Analytics

+44 20 7397 4395

[email protected]

Jeff Mango
Managing Director,

Strategic communications

+1 908 439 2200, ext. 5204

[email protected]

Source: AM Best

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