The Credit Ratings (ratings) and revised outlooks reflect Raffles’ profitable underwriting and overall results, and its supportive risk-adjusted capitalization, as well as the company’s favorable business profile as a large and well-established group captive.
Raffles has achieved excellent underwriting and overall earnings as a result of management’s rigorous underwriting guidelines maintained over many years, and the active involvement of each shareholder in aggressive loss control and claim management efforts. This has enabled Raffles to enhance its capitalization over the years. Weaker results registered in some years are somewhat mitigated by the retrospective rating features of the program, and the fact that members are assessed for and required to fund adverse development in incurred losses.
Partially offsetting these rating strengths are the company’s variable operating results and the concentration of assets in its investment portfolio. However, the company and its members maintain a certain amount of direct control over the fund, which is closely monitored and diversified. Variable operating performance reflects, in part, large dividends paid to members as a result of favorable underwriting experience in prior years.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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