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A.M. Best Affirms Ratings of RoyalStar Assurance LimitedA.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of RoyalStar Assurance Limited (RSA (News - Alert)) (Nassau, Bahamas). The outlook for each rating is stable. The ratings reflect RSA's solid risk-adjusted capitalization, above-average operating performance and its established presence in the Caribbean market. RSA continues to record overall profitability, which is derived from the company's strong underwriting performance and steady levels of investment income. Consistent earnings have enabled RSA to continue to maintain solid risk-adjusted capitalization. Under the direction of an experienced and knowledgeable management team with local market expertise, RSA provides personal and commercial lines coverage throughout the Bahamas, the Cayman Islands, and Turks and Caicos Islands. Partially offsetting these positive rating factors are its geographic concentration in the Bahamas, the company's exposure to weather-related catastrophe events andits dependence on reinsurance to mitigate losses and protect its surplus. Additionally, Caribbean insurance markets have become increasingly competitive as soft market conditions persist. 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 a comprehensive reinsurance program placed with a panel of high-quality reinsurers. This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.
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