Cavello Bay Re receives A (Excellent) financial strength rating from AM Best

AM Best, the credit rating agency, has assigned Cavello Bay Reinsurance Limited, a subsidiary of Enstar Group Limited based in Bermuda, a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” (Excellent), while both ratings come with a stable outlook.

These ratings reflect Cavello Bay’s robust financial position, with AM Best noting its very strong balance sheet.

Additionally, the ratings acknowledge Cavello Bay’s strong operating performance, positive business profile, and sound risk management practices.

As Enstar’s primary operating entity, Cavello Bay holds the majority of the group’s assets and liabilities.

Enstar, known for its established role in the run-off market, has extensive experience in managing claims across complex lines of business.

In 2024, Enstar announced its acquisition by Sixth Street, although the company’s business model is expected to remain largely unchanged post-acquisition.

AM Best has reviewed Enstar’s upcoming capital strategies and expects its balance sheet strength to remain stable throughout the closing of the acquisition and into 2025. Should there be significant changes in Enstar’s financial plans, AM Best may adjust Cavello Bay’s ratings accordingly.

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