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Improves the financial strength rating to A (Excellent), Financial Strength Category XIII for StarStone Specialty Insurance Company, StarStone National Insurance Company, Lancer Insurance Company, Lancer Insurance Company of New Jersey and American Surety Company
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Confirmation of the rating A- (Excellent) and the financial size category VIII for a 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”) today announced that AM Best has upgraded the financial strength ratings for the Company’s property and casualty insurance subsidiaries to A (Excellent), Financial Strength Category XIII, and affirmed Standard Life and Accident Insurance Company’s financial strength rating of A- (Excellent).
Jeff Consolino, Founder, President and CEO of Core Specialty, commented, “Core Specialty is proud of this upgrade from AM Best. The A (Excellent) rating for our property and casualty insurance subsidiaries reflects our balance sheet strength, operating performance, business profile and risk management, and is evidence that we are executing on our strategy. Core Specialty has the capital to take risks, the necessary underwriting talent, a proven and decisive leadership team and a track record of executing on goals. Together and in each of our specialized niche business units, we operate with strong entrepreneurial spirit and drive, speed, agility and decision-making authority.”
The full text of the AM Best press release appears below.
AM Best upgrades the credit rating of Core Specialty Insurance Holdings, Inc.’s subsidiaries
OLDWICK, NJ, August 28, 2024 – AM Best has upgraded the Financial Strength Rating (FSR) of StarStone Specialty Insurance Company and StarStone National Insurance Company, both headquartered in Cincinnati, OH, to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) from “a-” (Excellent) to “a” (Excellent). The outlook on these credit ratings (ratings) has been revised from positive to stable. At the same time, AM Best has upgraded the FSR of Lancer Insurance Company and Lancer Insurance Company of New Jersey, both headquartered in Long Beach, NY, to A (Excellent) from A- (Excellent) and the Long-Term ICR from “a-” (Excellent) to “a” (Excellent). The outlook on these ratings is stable.
Concurrently, AM Best upgraded the FSR of American Surety Company (Indianapolis, IN) to A (Excellent) from B++ (Good) and the Long-Term ICR to ‘a’ (Excellent) from ‘bbb+’ (Good). The Outlook on these ratings was revised to stable from positive. Together, these companies are subsidiaries of Core Specialty Insurance Holdings, Inc. (Core Specialty). In addition, AM Best removed 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, from review with evolving impact and affirmed. The Outlook assigned to these ratings is stable.
Core Specialty’s ratings reflect the strength of its balance sheet, which AM Best considers to be very strong, as well as its adequate operating performance, neutral business profile and adequate enterprise risk management (ERM).
The rating upgrades reflect the continued improvement of Core Specialty’s product and geographic diversification through acquisitions and organic growth initiatives. Since its inception in 2020, Core Specialty has grown strongly and expanded its market share in several key segments, while maintaining risk-adjusted capitalization at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR) and delivering profitable results. While there is a certain degree of operational risk with rapid expansion, Core Specialty has mitigated this risk somewhat by limiting the number of legacy assets acquired and acquiring proven books of business.
SLAICO’s ratings reflect the strength of its balance sheet, which AM Best considers to be very strong, as well as its adequate operating performance, limited business profile and adequate ERM.
SLAICO is expected to maintain a very low overall risk level overall. This will support Core Specialty’s medical stop loss division, although the majority of the business will be heavily reinsured. AM Best will continue to monitor SLAICO going forward as it supports Core Specialty’s broader strategy.
This press release refers to credit ratings published on AM Best’s website. All rating information related to this publication and related disclosures, including the identification of the bureau responsible for assigning each credit rating mentioned in this press release, can be found on AM Best’s website. Current review activity Website. For more information on the use and limitations of credit rating opinions, see Guide to Best Credit Ratings. For information regarding the proper use of AM Best’s credit ratings, performance ratings, preliminary credit ratings and press releases, please visit Guide to the correct use of Best’s ratings and reviews.
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 operates in over 100 countries and has 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 and mid-sized businesses. From its underwriting offices throughout the United States, the company focuses on niche markets, local distribution and superior underwriting knowledge, providing both traditional and innovative insurance solutions to meet the needs of its clients and brokers. Core Specialty is an insurance holding company that does business 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, all of which are U.S.-licensed insurers; and Standard Life and Accident Insurance Company, a life, accident and health insurer. For more information about Core Specialty, visit www.Core specialty.com.
CONTACT: Contact: Lynn Tetley (513) 295-1698 [email protected]
