A.M. Best has revised the issuer credit rating outlook to stable from positive and affirmed the financial strength rating of “A (Excellent)” of Jupiter Insurance, a captive of BP.
According to A.M. Best, the issuer credit rating outlook has been revised to stable because an upgrade to the rating is considered unlikely in the short term, due to difficult market conditions in the energy sector.
The ratings reflect Jupiter’s “excellent” risk-adjusted capitalisation and strong earnings track record, said A.M. Best.
An offsetting rating factor is the captive’s high net underwriting limits, as well as its concentrated investment portfolio.
The captive’s underwritten risks consist largely of offshore and onshore property and business interruption cover. It also provides reinsurance to its sister captive, Saturn Insurance.
