AM Best has affirmed the Financial Strength Rating (FSR) of B+ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bbb-” of the members of
The ratings reflect Castle Key’s balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating affirmations reflect Castle Key’s strong risk-adjusted capitalization, consistent organic surplus growth and appropriate catastrophe reinsurance program. An offsetting negative factor is the group’s geographic concentration, which results in a susceptibility to catastrophic loss accumulation. As a dedicated
Castle Key has posted operating profitability and surplus accumulation over the past several years despite periodic catastrophe losses brought on by hurricanes Hermine and Matthew in 2016, Irma in 2017 and Michael in 2018.
The ratings also benefit from the historical financial and operational support provided to Castle Key as part of the Allstate organization. Castle Key is capitalized separately and not reinsured by Allstate, but it is AM Best’s expectation that Allstate would provide sufficient support if necessary to maintain Castle Key’s risk-adjusted capital at a level commensurate with its rating level in the event of frequent or severe hurricane activity.
The FSR of B+ (Good) and the Long-Term ICRs of “bbb-” have been affirmed for the following members of the
- Castle Key Insurance Company
Castle Key Indemnity Company
Encompass Floridian Insurance Company
Encompass Floridian Indemnity Company
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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Source: AM Best