A.M. Best Co. announced that it has placed the financial strength ratings of “A-” (Excellent) of RoyalStar Assurance Limited, Security and General Insurance Company Limited and Bahamas First General Insurance Company Limited under review with negative implications. All the companies are located in Nassau, Bahamas.
“These rating actions reflect the uncertainty surrounding the ultimate net exposure from recent hurricane losses and their impact on the capitalization of each company,” said Best. “Although all three companies carry catastrophic reinsurance protection, it is premature to assess the total insured impact of the storms.”
Best said it “remains concerned with risk-adjusted capitalization, particularly with regard to the elevated probable maximum loss and the three companies’ ability to absorb a subsequent catastrophic event.”
The rating agency also indicated it would “continue to closely monitor the impact these hurricanes will have on the financial strength of these companies and any necessary management actions to improve capitalization.”
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