AM Best has affirmed the Financial Strength Ratings of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) for StarStone Insurance Bermuda Limited (SIBL) and StarStone Insurance SE (SISE). Both ratings carry a stable outlook.
These ratings reflect SIBL and SISE’s very strong balance sheet strength, adequate operating performance, limited business profiles, and appropriate enterprise risk management. The ratings are further supported by their ultimate parent, Enstar Group Limited, known for providing financial and operational assistance to its subsidiaries.
Both companies stopped underwriting new business in July 2020. SIBL has since divested its U.S. subsidiaries and Lloyd’s operations, retaining liabilities for business written before these disposals through reinsurance agreements. In 2023, the liabilities related to the Lloyd’s operations were transferred to Enstar’s Legacy Syndicate 2008 via reinsurance.
SIBL and SISE’s balance sheet strength is bolstered by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), at year-end 2023. AM Best anticipates that this capitalisation will remain strong in the medium term due to their runoff strategies.
SIBL’s strength is supported by a conservative investment portfolio and substantial reinsurance protection, including loss portfolio transfers (LPTs) from Enstar group entities. Since entering runoff, SIBL has shown positive reserve development, with part of this development ceded to Enstar affiliates. SISE benefits from a conservative investment portfolio and low net underwriting leverage due to significant cessions to SIBL.
Both companies have improved their operating performance through efficient claims management since entering runoff, which supports their adequate performance assessments. However, their very limited business profiles reflect the reduced scale resulting from corporate disposals and the decision to cease new business, limiting potential revenues.
For more details regarding these ratings and disclosures, visit AM Best’s Recent Rating Activity web page. For additional information on the use and limitations of credit rating opinions, refer to the Guide to Best’s Credit Ratings.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry, with a presence in over 100 countries. For more information, visit www.ambest.com.
