Oldwick
22 November 2017
Reporter: Becky Butcher

CNOOC’s captive ratings affirmed


A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-" of ICM Assurance (ICMA).

ICMA is the single-parent captive insurer of CNOOC International, which is wholly owned by CNOOC.

The ratings reflect ICMA’s overall balance sheet strength, as well as its solid level of risk-adjusted capitalisation, favourable performance record, limited business profile and appropriate risk management capabilities.

They also consider ICMA’s role as a single-parent captive and the implied support provided by CNOOC, whose management incorporates ICMA as a core element of CNOOC’s overall risk management safety and risk mitigation programmes.

Partially offsetting these positive rating factors are ICMA’s high gross loss potential due to the nature of the insurance provided for oil and gas exploration, which is subject to high severity and significant dependence on reinsurance.

According to the rating agency, ICMA has generally reported consistently adequate operating results.

It suggested that although favourable operating performance has been good in the most recent five years, underwriting results are “volatile and susceptible to occasional outsized losses”.

A.M. Best explained that despite its diversified business platform, “sustaining a trend of stable earnings is a challenge for ICMA due to the nature of the business”.

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Cayman captive industry generated $100m in 2016
14 December 2017 | Grand Cayman | Reporter: Ned Holmes
The Cayman Islands captive insurance industry generated $100 million for the island’s economy in 2016, according to a recent economic impact survey.
BDA board gains new chair
14 December 2017 | Hamilton | Reporter: Ned Holmes
Paul Scope has been elected as the new chair of the Bermuda Business Development Agency (BDA) and Shelby Weldon has been appointed to the board of directors.
Ameriprise captive rated ‘excellent’, says A.M. Best
14 December 2017 | New Jersey | Reporter: Ned Holmes
Ameriprise Captive Insurance Company (ACIC) has received a financial strength rating of “A (Excellent)” and a long-term issuer credit rating of “a+” from A.M. Best.
PRIIA to help grow Puerto Rico as a captive domicile
13 December 2017 | San Juan | Reporter: Ned Holmes
The Puerto Rico International Insurance Association (PRIIA) will play an expanded role in helping to grow the country into a leading captive insurance domicile, according to PRIIA president Hugo Cordova.
Brit launches new Bermuda-based SPI
13 December 2017 | Bermuda | Reporter: Ned Holmes
Insurance and reinsurance group Brit has launched a new Bermuda-domiciled collateralised reinsurance platform, Sussex Capital.
Two funds complete trade on ILSBlockchain
12 December 2017 | St Peter Port | Reporter: Ned Holmes
Two funds have completed what is believed to be the first secondary market securities trade on notes digitised on the ILSBlockchain, a private blockchain set up by Guernsey incorporated cell company Solidum Re.
NiSource captive rated ‘excellent’ by A.M. Best
11 December 2017 | Oldwick | Reporter: Ned Holmes
A.M. Best has given the financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-” to NiSource Insurance Corporation (NICI).