Research Update: Steamship Mutual Ratings Affirmed Following Revised Capital Model Criteria; Outlook Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Criteria Insurance General: Insurer Risk-Based Capital Adequacy--Methodology And Assumptions, Nov. 15, 2023"). The implementation of the revised capital model criteria has no material impact on our view of the financial strength of Steamship Mutual Underwriting Assn. (Bermuda) Ltd. and its other operating entities (Steamship or the club). We therefore affirmed our 'A' ratings on the club. The stable outlook reflects our expectation that the club will maintain capital adequacy in line with our 99.99% confidence level under our model and sustain closer to break-even underwriting results in 2024-2026. On March 4, 2024, S&P Global Ratings affirmed its 'A' long-term financial strength and issuer

...Key strengths Key risks Significant surplus of capital over the 99.99% benchmark of S&P Global Ratings' risk-based capital model. Exposed to volatility in its earnings through fluctuations in claims frequency and severity common to the P&I market Disciplined approach to underwriting supports Steamship's strong competitive position. Like most of its peers, Steamship remains undiversified outside its main product line, P&I. More conservative investment portfolio than the majority of its protection and indemnity (P&I) peers....

Research Update