KBRA Assigns Rating to Star Vantage Reciprocal Exchange
June 27 2024 - 2:56PM
Business Wire
KBRA assigns a BBB Insurance Financial Strength Rating (IFSR) to
Star Vantage Reciprocal Exchange. The Outlook for the rating is
Stable.
Star Vantage Reciprocal Exchange ("Star Vantage") is a new
Mississippi domestic reciprocal property and casualty insurance
company headquartered in New Port Richey, FL which will write
personal lines and commercial lines business on an admitted basis
in Mississippi and on a surplus lines basis in other states. The
rating reflects Star Vantage's low underwriting leverage and
significant surplus relative to projected premiums written. The
rating also reflects a favorable market opportunity due to the
company entering a market with (until recently) declining private
market capacity. The management team has solid industry experience
and expects to write highly customizable policies which it views as
a competitive advantage. Additionally, as a start-up insurer, Star
Vantage has no legacy liabilities. Star Vantage will have minimal
start up expenses due to an organizational structure whereby the
Attorney-in-Fact (AIF) will incur the majority of start-up costs.
Balancing these strengths is the company's high financial leverage
due to 91% of its surplus base consisting of a $15.5 million
surplus note. Furthermore, as a property writer in the Southeast,
the company will have product and geographic concentration, natural
catastrophe exposure due to hurricanes and high reinsurance
dependence that, depending on availability and affordability, could
materially impact results. Lastly, as a de novo insurer, Star
Vantage's future profitability is uncertain and dependent upon
management executing its business plan.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- Insurance: Insurer & Insurance Holding Company Global
Rating Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004878
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Analytical Contacts
Jonathan Harris, Senior Director (Lead Analyst) +1 646-731-1235
jonathan.harris@kbra.com
Lewis Delosa, Director +1 646-731-2312 lewis.delosa@kbra.com
Sean Campbell, Senior Analyst +1 646-731-3361
sean.campbell@kbra.com
Peter Giacone, Senior Managing Director (Rating Committee Chair)
+1 646-731-2407 peter.giacone@kbra.com
Business Development Contact
Tina Bukow, Managing Director +1 646-731-2368
tina.bukow@kbra.com