AM Best has affirmed the credit ratings of StarStone Insurance Bermuda Limited (SIBL) and its European subsidiary, StarStone Insurance SE (SISE).
The rating agency affirmed their financial strength ratings of A- (‘excellent’) with stable outlook.
The ratings reflect SIBL and SISE’s balance sheet strength, which AM Best assesses as very strong, as well as their marginal operating performance, limited business profile and appropriate enterprise risk management.
Both companies’ ratings benefit from the support of their ultimate parent, Enstar Group Limited, which has a track record of providing them with financial assistance and operational support, AM Best said. Both companies ceased writing new business in July 2020, and SIBL has since disposed of its US subsidiaries.
AM Best expects risk-adjusted capitalisation for both entities to remain at the strongest level over the medium term, based on their run-off plans.
But the companies’ marginal operating performance assessments reflect their poor historical performance, AM Best said. Their limited business profile assessments consider their significantly reduced scale as a result of corporate disposals and the decision to cease writing new business.
StarStone, AM Best