A.M. Best Affirms Rating of RoyalStar Assurance Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of RoyalStar Assurance Limited (RoyalStar) (Bahamas). The rating outlook is stable. The rating reflects RoyalStar's solid capitalization, generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating results and well established presence in the Caribbean market. These attributes are supported by management's commitment to effective control systems, a strong reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. program and knowledge of local markets. RoyalStar provides personal and commercial lines coverage through a network of agents and brokers throughout the Bahamas, Cayman Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. and Turks & Caicos Islands Caicos Islands: see Turks and Caicos Islands. . In the Bahamas, the Bahamas, the (bəhä`məz), officially Commonwealth of the Bahamas, independent nation (2005 est. pop. 301,800), 4,403 sq mi (11,404 sq km), in the Atlantic Ocean, consisting of some 700 islands and islets and about 2,400 cays, beginning c. company operates from offices in Nassau and Freeport. Partially offsetting these positive attributes is RoyalStar's exposure to hurricane activity in the region, which presents a substantial level of risk exposure to RoyalStar and other insurers in the region. The level of catastrophe risk is mitigated by the company's efficient reinsurance program, which protects capital from both frequency and severity of events. Furthermore, the Caribbean insurance market has become increasingly competitive as indigenous insurers are challenging more established companies to gain market share. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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