AM Best Affirms Credit Ratings of Sooner Insurance Company
07 Mars 2024 - 4:51PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+”
(Excellent) of Sooner Insurance Company (Sooner) (Colchester, VT).
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Sooner’s balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, neutral business profile and appropriate enterprise
risk management (ERM).
Sooner’s balance sheet strength is underpinned by its
risk-adjusted capitalization at the strongest level, as measured by
Best’s Capital Adequacy Ratio (BCAR), its generally favorable loss
reserve development and low underwriting leverage. Sooner’s most
significant asset is a loan back to its ultimate parent,
ConocoPhillips [NYSE: COP]. The arrangement provides Sooner with
capital and has a relatively low risk due to the parent/subsidiary
affiliation, as well as ConocoPhillips’s strong balance sheet and
history of positive earnings.
Sooner has a sustained track record of strong operating
performance, driven by solid underwriting profits, with most return
metrics outperforming the industry composite. The company’s loss
experience has been largely favorable for more than a decade due in
large part to ConocoPhillips’s strong risk management programs. As
a core component in ConocoPhillips’s ERM program, the captive
arrangement affords the corporation flexibility to efficiently and
productively manage potential large losses.
Sooner’s neutral business profile assessment reflects its
position as the primary captive insurer for its ultimate parent.
Sooner’s underwriting risks mainly provides property damage and
excess liability coverage to ConocoPhillips and its global
subsidiaries and joint ventures.
Sooner’s ERM demonstrates a culture of risk awareness and a
framework to identify and manage various types of risks
continually, including periodic reviews of its potential loss
exposures through a specialist within industrial risks, a process
AM Best views as very appropriate for the company’s risk profile.
The ratings also reflect the implicit and explicit support of
ConocoPhillips and the strategic role the captive plays in its
parent’s ERM program.
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 © 2024 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
Daniel Teclaw Director +1 908 882 2390
dan.teclaw@ambest.com
Christopher Sharkey Associate Director, Public Relations +1
908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1 908 882
2318 al.slavin@ambest.com
ConocoPhillips (NYSE:COP)
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ConocoPhillips (NYSE:COP)
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