Bermudian-based Cavello Bay Reinsurance Ltd has once again secured an “A” (Excellent) financial strength rating from AM Best, along with an “a+” (Excellent) long-term issuer credit rating. The outlook for both ratings remains stable.

Cavello Bay is a subsidiary of Enstar Group Ltd, also headquartered in Bermuda. The reaffirmation of the ratings reflects what AM Best described as the company’s “very strong” balance sheet, “strong operating performance”, “favourable business profile" and “appropriate enterprise risk management”.

The ratings agency noted that Cavello Bay continues to benefit from the support and stability of its parent, Enstar, which was acquired by investment firm Sixth Street Partners, LLC. Despite the change in ownership, AM Best expects Enstar’s business model to remain consistent.

Enstar has built a strong reputation in recent years as a market leader in non-life runoff insurance, according to AM Best. It has also expanded into new areas, including short-tailed risk solutions and insurance-linked securities.