Enstar Group has revealed that S&P Global Ratings has assigned an Insurer Financial Strength Rating of ‘A’ with a stable outlook to its Bermuda-based, wholly-owned subsidiary, Cavello Bay Reinsurance Limited.
Matthew Kirk, Enstar’s Chief Financial Officer, commented on the issuance, “The S&P Insurer Financial Strength Rating is further confirmation of our strong capital position.
“The ‘A’ rating for Cavello Bay, our primary Bermuda reinsurer, recognizes the resilience of our business model and will provide additional flexibility to structure legacy transactions in the future.”
On issuing its rating, S&P highlighted Enstar’s competitive position as a “leader in the global non-life run-off market”, noting that it considers Enstar’s claims management capabilities to be “excellent”, as well as its expectation that Enstar will “continue executing large legacy transactions.”
In its full-year 2023 results, Enstar posted a net income of $1.1 billion compared to a net loss of $906 million for 2022.
The firm’s return on equity for the year also improved significantly from the prior year, reaching 24.2%.
