Correction: Insurance Journal regrets an error in the original headline of this story, posted on Sept. 13, 2010, that incorrectly stated Star Casualty’s ratings were downgraded. Star Casualty’s ratings were affirmed.
A.M. Best has revised the outlook to negative from stable and affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of Star Casualty Insurance Company, Coral Gables, Fla.
The negative outlook reflects the significant challenges Star Casualty’s management will encounter as it continues to execute its strategies to return to underwriting profitability in view of the current market and economic conditions in its primary state of operations.
The ratings recognize that Star Casualty has maintained an adequate level of risk-adjusted capitalization, its five-year positive operating income and its strong market presence in Florida, where management possesses extensive knowledge of the non-standard automobile business.
In addition, Star Casualty has experienced erratic loss reserve development and persistent underwriting losses that have resulted in inconsistent operating income and an increase in reinsurance dependency.
Topics Casualty
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