A BP captive insurance company, Jupiter Insurance, has had its financial strength rating of ‘A’ and the long-term issuer credit rating of “a” affirmed by A.M. Best.
A.M. Best classified Jupiter’s balance sheet strength as very strong, and noted its strong operating performance, neutral business profile and appropriate enterprise risk management.
Jupiter’s is expected by A.M. Best to have its risk-adjusted capitalisation remain at the strongest level, supported by strong internal capital generation.
A capital base of approximately USD 6.5 billion at year-end 2018 supports the captive’s high maximum line size of USD 1.5 billion.
Jupiter’s investments are highly focused, with 98 percent accounted for by discount notes issued by BP International, with durations of between one and 12 months.
Consequently, AM Best considers Jupiter’s financial strength to be combined closely to that of BP.
Jupiter’s business profile assessment reflects its key role in BP’s overall risk management framework, as its principal captive.
