AM Best Assigns Credit Ratings to Star Mutual Risk Retention Group, Inc.
August 30 2024 - 10:59AM
Business Wire
AM Best has assigned a Financial Strength Rating of B+
(Good) and a Long-Term Issuer Credit Rating of “bbb-” (Good) to
Star Mutual Risk Retention Group, Inc. (Star) (Knoxville, TN). The
outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Star’s balance sheet strength, which AM Best
assesses as adequate, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management.
The balance sheet strength assessment considers Star’s strong
level of risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), augmented by its surplus growth
since inception (and through its projected near term) and supported
through membership contributions. Management adheres to a
conservative investment philosophy and has an appropriate
reinsurance program in place supporting modest retentions. The
company’s operating results align with adequately rated companies
within AM Best’s commercial auto liability composite. The company
has generated modest underwriting losses in the early stages of its
lifecycle, reflecting moderate volatility in both its loss and
expense ratios. Star is a mutual risk retention group, providing
monoline commercial auto liability coverage for its members,
focusing on small to medium fleet operators. Risk management and
loss prevention are prioritized and embedded into the company’s
in-house underwriting system platform designed for improving risk
selection and to reflect the company’s risk appetite and risk
tolerances. Risk mitigation practices are also shared among its
members as loss prevention and mitigation efforts.
The stable outlooks reflect AM Best's expectation that Star will
maintain its adequate balance sheet strength and adequate operating
performance, while prudently growing its premium book and its
surplus organically and through its new member 'per unit'
contributions.
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. For more information,
visit www.ambest.com.
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Chul Lee Senior Financial Analyst +1 908 882
2005 chul.lee@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Dan Teclaw Director +1 908 882 2390
dan.teclaw@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com