The rating is based on RoyalStarﾴs (formerly Royal & Sun Alliance Insurance (Bahamas) Ltd) substantially improved level of capitalization and earnings posture in 2003, solid balance sheet, committed new ownership and strong market presence. The rating also recognizes managementﾴs local market expertise, as well as its conservative investment approach, which has historically enabled the company to offset underwriting shortfalls.
Over the years, RoyalStar has been operating in The Bahamas as a 100% owned subsidiary of Royal & Sun Alliance Insurance Group plc (United Kingdom). With offices in Nassau, Freeport and Abaco, the company provides services through a distribution network of agents and brokers throughout The Bahamas, Cayman Islands and Turks and Calicos Islands. During 2002, 75% of the shares of the Company were sold to a consortium of Bahamian investors with Nemwil, a Trinidadian insurer purchasing the balance. As a result, its level of capaitalizaiton was significantly increased.
RoyalStar has benefited from refining its business strategy by identifying certain market segments to be targeted where the Company has not had a strong presence in the past.
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