The rating agency also affirmed the long-term issuer credit rating of “a+” of the captive.
Blue Whale has strong risk-adjusted capitalisation and a conservative operating strategy, according to A.M. Best.
Partially offsetting these positive rating factors are the captive’s very large gross and net underwriting exposures to property losses, and its dependence on reinsurance.
The rating agency explained that as its reinsurer and insurer, Blue Whale plays an important role in Pfizer’s overall enterprise risk management programme. The captive also assumes a “critical role” in protecting Pfizer’s assets and therefore benefits from the group’s extensive risk management and loss control programmes.
The captive’s ratings and outlooks could be upgraded if the company’s operating performance improves, and risk-adjusted capital remains supportive of the ratings, according to A.M. Best.