AM Best Affirms Ratings For Cavello Bay
AM Best has affirmed an A [Excellent] rating for Bermuda-based Cavello Bay Re, a subsidiary of Enstar, citing strong financials and a stable outlook.
The ratings agency said, “AM Best has affirmed the Financial Strength Rating of A [Excellent] and a Long-Term Issuer Credit Rating of “a+” [Excellent] of Cavello Bay Reinsurance Limited [Cavello Bay] [Bermuda], a subsidiary of Enstar Group Limited [Enstar] [Bermuda]. The outlook of these Credit Ratings [ratings] is stable.
“The ratings reflect Cavello Bay’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
“The affirmation reflects a continuation of Enstar’s robust capitalization through its acquisition by Sixth Street Partners, LLC [Sixth Street]. In recent years, Enstar has established itself as a market leader in the non-life runoff space and continues to introduce new products to service short-tailed and insurance-linked securities solutions as well. AM Best anticipates that the business model will remain generally consistent under the ownership of Sixth Street.”
