The captives’ financial strength ratings have been affirmed as “A (Excellent)” and the long-term issuer credit ratings as “a+”.
A.M. Best expects SVAG’s risk-adjusted capitalisation to remain “very strong”, supported by internal capital generation.
The ratings agency suggested that the captive has an “excellent performance track record”, driven by its underwriting results, as demonstrated by a five-year average combined ratio of 41 percent.
SVAG is a key part of its parent’s overall risk management framework, A.M. Best said. Non-life risks largely consist of offshore and onshore property and liability business, as well as associated business interruption cover.
SVAG also has a fully-owned Bermudian subsidiary, Solen Insurance Limited, which writes internal reinsurance business.
The ratings of SVAG have been extended to Noble, which is domiciled in Texas, writes Shell’s US business and cedes 100 percent of its risks to SVAG through a quota share reinsurance agreement.