S&P has given Diageo Group Insurance (DGI), the wholly owned, Guernsey-based captive subsidiary of the UK-based drinks manufacturer Diageo PLC, a credit rating of A-/Stable.
“The ratings on DGI therefore reflect those on its parent,” said a note from S&P, adding that DGI is regarded as: “an integral part of the Diageo group's risk management strategy. It is the group's only captive insurer and all its business is sourced from the group.”
“Diageo has maintained a captive strategy since 1983 to minimize the risk-transfer costs of the group, and to increase the emphasis on risk management and loss prevention within the group. In turn, DGI remains wholly reliant on Diageo to preserve its competitive position and financial flexibility. Hence, DGI's fortunes are inextricably linked to those of Diageo.”
