Spirit Insurance Company and Radius Insurance Company have had their financial strength ratings of A (Excellent) and long-term issuer credit ratings of “a” affirmed by A.M. Best.
The outlook of these credit ratings is stable.
According to A.M. Best, the ratings reflect Spirit and Radius’ balance sheet strength, categorised as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Spirit and Radius’ balance sheet strength is supported by risk-adjusted capitalisation at the strongest level, measured by A.M. Best’s Capital Adequacy Ratio.
The captive’s underwriting risks consist of onshore and offshore property and liability business.
Partially offsetting ratings factors are Spirit and Radius’ exposure to large losses due to the limits offered on their respective policies and their significant dependence on reinsurance protection.
Additionally, Spirit’s terrorism risk exposure remains high, but concerns are mitigated by reinsurance protection afforded under the Terrorism Risk Insurance Program Reauthorization Act.