Enstar hints at Atrium/StarStone sale
AM Best affirms StarStone ratings
AM Best has confirmed that its financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” of StarStone Insurance Bermuda and its subsidiaries remain unchanged.
The announcement comes in the wake of Enstar Group’s confirmation in a Securities and Exchange Commission filing dated 18 June 2018 that it is evaluating market interest in a potential sale of StarStone, which is principally owned by Enstar and funds managed by Stone Point Capital. Agreements between Enstar and Stone Point provide each party with various rights and obligations regarding Stone Point’s interest in StarStone.
The rating agency said that StarStone currently enjoys significant support from its shareholders, which extends to reinsurance of discontinued and active lines, provision of management personnel and strategic support relating to acquisitions, new lines of business and other corporate developments.
AM Best added that it does not view the evaluation of market interest in a potential sale as amounting to a change of rating fundamentals for StarStone. However, a sale of StarStone, if it were to occur, would introduce new considerations into AM Best’s building block based assessment of the company’s credit ratings. AM Best concluded by stating that it will monitor these prospective developments closely.
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