A.M. Best has affirmed the “A (Excellent)” financial strength rating of Bison Insurance Company, the captive of Duke Energy Corporation, located in Charleston, South Carolina.
The ratings agency also affirmed the captive’s “a” long-term issued credit rating.
According to A.M. Best, the affirmation reflects Bison’s “excellent” risk-adjusted capitalisation, “favourable” underwriting results and “effective” enterprise risk management controls.
Bison insures select risks for Duke Energy, providing a variety of coverage in property/casualty lines of business.
While favourable operating performance has been reported consistently over the last five years, and the first nine months of 2016, underwriting results are volatile, which puts them at risk to “occasional outsized” losses, A.M. Best said.
According to A.M. Best, Duke Energy’s risk management team takes a holistic approach to managing its risks and utilises the captive as an integral part of this process.
The ratings agency suggested that Bison’s long-term growth opportunities depend on Duke Energy’s business success.
