AM Best Affirms Credit Ratings of Sooner Insurance Company
17 Janeiro 2023 - 1:01PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+”
(Excellent) of Sooner Insurance Company (Sooner) (Colchester, VT).
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Sooner’s balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, neutral business profile and appropriate enterprise
risk management (ERM).
Sooner’s balance sheet strength is underpinned by its
risk-adjusted capitalization at the strongest level, as measured by
Best’s Capital Adequacy Ratio (BCAR), generally favorable loss
reserve development and low underwriting leverage. Sooner’s most
significant asset is a loan back to its ultimate parent,
ConocoPhillips [NYSE: COP]. The loan provides Sooner’s capital and
is considered to have low risk due to the parent/subsidiary
affiliation, as well as the parent’s strong balance sheet and
history of positive earnings.
Sooner has a long track record of strong operating performance,
driven by solid underwriting profits, with most return metrics
outperforming the industry composite. The company’s loss experience
has been largely favorable for more than a decade due in large part
to ConocoPhillips’s strong risk management programs. As a core
component in ConocoPhillips’ ERM program, the captive arrangement
afforded the corporation flexibility to manage the largest loss
efficiently and productively in its history from a claim late in
2021.
The company’s business profile assessment reflects its position
as the captive insurer for its ultimate parent. Sooner’s
underwriting risks mainly provide property damage and excess
liability coverage to ConocoPhillips and its global subsidiaries
and joint ventures.
Sooner’s ERM has a culture of risk awareness and a framework to
identify and manage various types of risks continually, including
periodic reviews of its potential loss exposures through a
specialist within industrial risks, a process AM Best views as very
appropriate for the company’s risk profile. The ratings also
reflect the implicit support of ConocoPhillips and the critical
role the captive plays in its ERM program.
AM Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the
United States and throughout the world. For current Best’s Credit
Ratings and independent data on the captive and alternative risk
transfer insurance market, please visit
www.ambest.com/captive.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20230117005864/en/
Kourtnie Beckwith, CPCU, AU, AMIM Senior Financial
Analyst +1 908 439 2200, ext. 5124
kourtnie.beckwith@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Dan Teclaw Director +1 908 439 2200, ext.
5394 dan.teclaw@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 439 2200, ext. 5098 al.slavin@ambest.com
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