Market Overview

A.M. Best Affirms Credit Ratings of RoyalStar Assurance Limited


A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of "a" of RoyalStar
Assurance Limited
(RSA) (Nassau, Bahamas). The outlook of these
Credit Ratings (ratings) is stable.

The ratings reflect the company's balance sheet strength, which A.M.
Best categorizes as strongest, as well as its strong operating
performance, limited business profile and appropriate enterprise risk

RSA continues to generate overall earnings, which are derived from its
strong underwriting performance and steady levels of investment income,
especially in non-catastrophe years. Positive earnings have enabled RSA
to continue to maintain strongest risk-adjusted capitalization. Under
the direction of its experienced management team with local market
expertise, RSA provides personal and commercial lines coverage
throughout the Bahamas, the Cayman Islands, and Turks and Caicos Islands.

These strengths are partially offset by the geographic concentration of
RSA's business in the Bahamas, the company's exposure to weather-related
catastrophe events and its dependence on reinsurance to mitigate losses
and protect its surplus. 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 its
comprehensive reinsurance program placed with a panel of high-quality

This press release relates to Credit Ratings 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
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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