AM Best Affirms Credit Ratings of Spirit Insurance Company and Radius Insurance Company
15 Décembre 2023 - 5:05PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Ratings of “a”
(Excellent) of Spirit Insurance Company (Spirit) (Colchester, VT)
and Radius Insurance Company (Radius) (Cayman Islands). The outlook
of these Credit Ratings (ratings) is stable.
The ratings reflect Spirit and Radius’ balance sheet strength,
which AM Best assesses as very strong, as well as each company’s
adequate operating performance, neutral business profile and
appropriate enterprise risk management.
Spirit and Radius each have the inherent benefits of financial
flexibility and support as captive insurers for their ultimate
parent, Phillips 66 [NYSE: PSX], with integrated operations,
closely aligned and uniform interests, and are established core
elements in its overall risk management program. The captives’ loss
experience has remained generally favorable due to the parent’s
strong loss control program and relatively small number of material
catastrophe losses. Phillips 66 conducts periodic reviews of Spirit
and Radius’ potential loss exposures through an industrial risks
specialist, which demonstrates its commitment to safety.
The captives’ underwriting risks largely consist of onshore and
limited offshore property and liability business. Spirit provides
property damage, business interruption, construction all risks,
excess liability and employee medical reimbursement insurance for
Phillips 66, its affiliates and subsidiaries’ domestic U.S.
operations only; however, Spirit generally does not provide
coverage for Texas-based risks. Radius provides similar coverage
(i.e., property damage, business interruption, excess liability) to
Phillips 66, its affiliate and subsidiaries’ non-U.S. risks in
which Phillips 66 has ownership interests. However, premium and
exposures for Radius declined in 2022 after removing U.K. property
exposures from the captive.
Spirit and Radius have exposure to low frequency, high severity
loss claims due to the sizable limits offered on their respective
policies, introducing potential significant dependence on
reinsurance protection. Spirit also provides terrorism coverage to
its parent. Though relatively high on a gross basis, terrorism
exposure is heavily mitigated by reinsurance protection afforded by
coverage under the federal Terrorism Risk Insurance Program
Reauthorization Act, which expires in 2027.
AM Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the
United States and throughout the world. For current Best’s Credit
Ratings and independent data on the captive and alternative risk
transfer insurance market, please visit www.ambest.com/captive
.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best's
Credit Ratings. For information on the proper use of Best’s Credit
Ratings, Best’s Performance Assessments, Best’s Preliminary Credit
Assessments and AM Best press releases, please view Guide to Proper
Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance
industry. Headquartered in the United States, the company does
business in over 100 countries with regional offices in London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Kourtnie Beckwith Senior Financial Analyst +1
908 882 1649 kourtnie.beckwith@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Daniel Teclaw Director +1 908 882 2390
dan.teclaw@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
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