Oldwick
21 September 2017
Reporter: Becky Butcher

ConocoPhillips captive ratings affirmed ‘excellent’


A.M. Best has affirmed the financial strength rating of “A (Excellent)” and long-term issued credit rating of “a” of Sooner Insurance Company (Sooner), the captive insurer of ConocoPhillips.

Sooner provides property damage, business interruption and general liability insurance to ConocoPhillips and its subsidiaries worldwide.

The rating affirmations reflect Sooner’s excellent risk-adjusted capitalisation, historically favourable operating results driven by favourable underwriting results, conservative reserve levels and the position it holds as the captive insurer for ConocoPhillips.

The ratings also consider the level of commitment on the part of ConocoPhillips, whose management incorporates Sooner as a core element in its overall risk management programme.

According to A.M. Best, partially offsetting these positive rating factors are Sooner’s significant reinsurance credit risk, stemming from the large limits offered on its policies, the possible change in the captive’s net retentions that could happen year over year, and the limited diversification of business written, which is expected with a single-parent captive.

The rating agency suggested that Sooner may have high net retentions based on its the capacity of the overall insurance market from year to year, however, Sooner has the capital to retain these risks, if net retentions were to increase.

Although the majority of Sooner’s capital is loaned to ConocoPhillips, it is considered to have relatively low risk due to this affiliation, as well as the parent’s strong balance sheet and history of positive earnings, A.M. Best explained.

More ratings 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
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.
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).
Saipem captive rated ‘excellent’
08 December 2018 | London | Reporter: Jenna Lomax
A.M. Best has given a financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-” to Sigurd Rück
ERI Re receives ‘good’ ratings
30 November 2017 | Mexico City | Reporter: Becky Butcher
A.M. Best has assigned a financial strength rating of “B+ (Good)”, and a long-term issuer credit rating of “bbb-“ to Barbados reinsurer Energy Risk Indemnity Reinsurance (ERI Re)
A.M. Best withdraws American Safety RRG’s ratings
30 November 2017 | Oldwick | Reporter: Becky Butcher
American Safety Risk Retention Group (RRG) has requested to withdraw from A.M. Best’s interactive rating process
CNOOC’s captive ratings affirmed
22 November 2017 | Oldwick | Reporter: Becky Butcher
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)
JPMorgan Chase captive ratings affirmed
21 November 2017 | Oldwick | Reporter: Barney Dixon
Park Assurance Company, the single-parent captive of JPMorgan, has had its financial strength rating of “A (Excellent)” and long-term issuer credit rating of “a” affirmed by A.M. Best