The rating agency affirmed the financial strength and long-term issuer credit ratings of Cedar Court Indemnity Company at “A- (Excellent)” and “a-”, respectively.
The ratings reflect Cedar Court’s strong risk-adjusted capitalisation, conservative operating strategy and the critical role it plays as a parent captive insurer of Honeywell, which, as a diversified organisation, serves customers worldwide across the aerospace market, control technologies for buildings, turbochargers and performance materials.
Partially offsetting these positive rating factors are Cedar Court’s relatively large reserves and incurred but not reported reserves, as well as volatile underwriting performance in recent years.
Despite volatility, A.M. Best recognises the role Cedar Court plays, its mission, and the ability to accept risk and volatility in exchange for availability and pricing. Its captive orientation also considers the substantial financial resources of its parent, Honeywell.