- Upgrades the Financial Strength Rating to A (Excellent), Financial Size Category of XIII for StarStone Specialty Insurance Company, StarStone National Insurance Company, Lancer Insurance Company, Lancer Insurance Company of New Jersey and American Surety Company
- Affirmation of A- (Excellent) Rating, Financial Size Category of VIII for Standard Life and Accident Insurance Company
CINCINNATI, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Core Specialty Insurance Holdings, Inc. and its subsidiaries (“Core Specialty” or the “Company”) announced today that AM Best has upgraded the Financial Strength Ratings for the Company’s property and casualty insurance subsidiaries to A (Excellent), Financial Size Category of XIII, and affirmed the Financial Strength Rating of A- (Excellent) of Standard Life and Accident Insurance Company.
Jeff Consolino, Founder, President and Chief Executive Officer of Core Specialty, commented, “Core Specialty is proud to attain this ratings upgrade from AM Best. The A (Excellent) rating for our property and casualty insurance subsidiaries is a reflection on our balance sheet strength, operating performance, business profile, and enterprise risk management as well as evidence that we are delivering on our strategy. Core Specialty has the capital to take on risk, the underwriting talent in place, a proven and decisive leadership team, and a track record of making things happen. Collectively, and in each of our specialist niche business units, we operate with strong entrepreneurial spirit and drive, speed, agility, and empowered decision-making.”
The full text of the AM Best release appears below.
AM Best Upgrades Credit Ratings of Core Specialty Insurance Holdings, Inc. Subsidiaries
OLDWICK, N.J., August 28, 2024—AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of StarStone Specialty Insurance Company and StarStone National Insurance Company, both headquartered in Cincinnati, OH. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. At the same time, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” (Excellent) from “a-” (Excellent) of Lancer Insurance Company and Lancer Insurance Company of New Jersey both headquartered in Long Beach, NY. The outlook of these ratings is stable.
Concurrently, AM Best has upgraded the FSR to A (Excellent) from B++ (Good) and the Long-Term ICR to “a” (Excellent) from “bbb+" (Good) of American Surety Company (Indianapolis, IN). The outlook of these ratings has been revised to stable from positive. Collectively these companies are subsidiaries of Core Specialty Insurance Holdings, Inc. (Core Specialty). In addition, AM Best has removed from under review with developing implications and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Standard Life and Accident Insurance Company (SLAICO) (League City, TX) an affiliate of Core Specialty. The outlook assigned to these ratings is stable.
The ratings of Core Specialty reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect continued improvement in Core Specialty’s product and geographical diversification through acquisitions and organic growth initiatives. Since its formation in 2020, Core Specialty has grown substantially and increased market share in various key segments, all while maintaining risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and producing profitable results. While some level of operational risk exists with rapid expansion, Core Specialty has somewhat mitigated this risk through limiting the number of legacy reserves acquired and acquiring seasoned books of business.
The ratings of SLAICO reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM.
SLAICO is anticipated to maintain very low levels of total risk overall. This will support Core Specialty’s medical stop loss division although most of the business will be heavily reinsured. AM Best will continue to monitor SLAICO going forward, as it supports the greater Core Specialty strategy.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
About Core Specialty
Core Specialty offers a diversified range of specialty insurance products for small to mid-sized businesses. From its underwriting offices spanning the U.S., the company focuses on niche markets, local distribution, and superior underwriting knowledge; offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess & surplus lines insurer, StarStone National Insurance Company, Lancer Insurance Company, Lancer Insurance Company of New Jersey and American Surety Company, each of which is a U.S. admitted markets insurer, and Standard Life and Accident Insurance Company, a life, accident and health insurer. For further information about Core Specialty, please visit www.corespecialty.com.
