AM Best has revised the under review status to developing from negative for the Financial Strength Ratings of A- (Excellent) and the Long-Term Issuer Credit Ratings of "a-" of StarStone Specialty Insurance Company (SSIC) and StarStone National Insurance Company (SNIC) (collectively SSUS). Both companies are domiciled in Wilmington, DE.
The revised implications status follows additional information provided regarding SSUS’ business plan moving forward and reinsurance support provided by Enstar Group Limited, the current majority shareholder. These ratings were initially placed under review on June 12, 2020, following the announcement of a re-capitalization plan (see related press release). Going forward, Enstar will maintain a significant, but minority ownership position in the SSUS venture and continue to provide reinsurance support, while new investors will provide a material capital increase. The transaction is still subject to regulatory approvals and is expected to close by year-end 2020. The under review status will be resolved post-close when AM Best has completed its analysis of SNIC and SSIC to evaluate the impact of the planned transaction and change in strategic direction on these companies’ building block assessments.
A stable outlook could be assigned if the transaction closes under the conditions presented to AM Best. Negative rating actions could occur if the transaction is not successful or if there is a material change to the current business plan.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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