AM Best has assigned a financial strength rating of A (Excellent) and a long-term issuer credit rating of “a+” (Excellent) to Bermudian reinsurer, Cavello Bay Reinsurance, a subsidiary of Bermudian-based Enstar Group Limited.

The outlook assigned to these ratings is stable.

They reflect Cavello Bay’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

Cavello Bay is the lead operating entity of Enstar, comprising the majority of the group’s assets and liabilities.

It is Enstar’s primary non-life run-off consolidator, and a Class 3B reinsurer with the Bermuda Monetary Authority.

Enstar has an established presence in the run-off market with a long track record of effectively managing claims in complicated lines of business.

In 2024, Enstar announced it was being acquired by Sixth Street. As part of the acquisition, it is anticipated that Enstar’s current business model will remain largely unchanged.

AM Best has reviewed Enstar’s prospective capital actions and believes its balance sheet strength should remain at the current level throughout the close of the transaction and the remainder of 2025.

S&P Global Ratings assigned an insurer financial strength rating of “A” with stable outlook to Cavello Bay Re a year ago this month.