AM Best has revised the outlooks to negative from stable and affirmed the financial strength rating of ‘B+’ (good) and the long-term issuer credit rating of “bbb-” (good) of Tennessee-domiciled Star Mutual Risk Retention Group.
The negative outlook reflects concerns regarding pressure on Star Mutual’s risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio (BCAR), due to the company’s rapid growth trajectory, which has significantly exceeded projections.
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