[A.M. Best Co.](http://www.ambest.com) has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of [RoyalStar Assurance Limited ](http://www.rsabahamas.com/)(RSA) of Nassau, Bahamas. The outlook for both ratings is stable.

A release from A.M. Best says the ratings reflect RSA’s solid risk-adjusted capitalization, favorable operating results and strong reinsurance program. They say, *“The company is well established in its various markets with a management team that is experienced in dealing with market cycles. These positive characteristics are supported by RSA’s disciplined approach to underwriting, capital maintenance and risk management.”*

RSA provides coverage for property, property catastrophe, liability, fidelity, marine and motor lines of business. Although primarily servicing the Bahamas, the company also provides products in the Cayman Islands, Turks and Caicos.

Concerns relating to RSA’s geographic concentration and exposure to hurricane activity reportedly are mitigated by its strong reinsurance programme with prominent reinsurance companies. A.M. Best says the programme, which protects against multiple events, reduces RSA’s net probable maximum loss to a manageable level, but substantially increases the cost of operations. Additionally, RSA operates in active markets with competition from both indigenous and outside companies seeking market share.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.