According to A.M. Best, the positive ratings are based on Queen City and Vine Court’s individual and joint profiles as single-parent captives of The Kroger Company.
The positive ratings are also due to both captives’ risk-adjusted capitalisation, substantial net income and underwriting profitability, as well as their growing capital base, conservative investments and a strong adherence to the parent’s robust risk controls and overall risk culture.
A.M. Best also noted that the captives’ return measures on a group and individual basis are frequently positive, which it said highlights the company’s prudent pricing and deployment of capital.
Partially offsetting these strengths are the companies’ risk concentration—a consequence of being single-parent captives of The Kroger Company—and the significant aggregate limit retained by the captives.
A.M. Best recognised the aim of the captives and the financial resources and support they are offered as part of The Kroger Company.