A.M. Best has assigned the financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” of Saturn Insurance. The outlook for both ratings is stable.
Saturn Insurance is a captive of global oil and gas giant, BP.
The ratings reflect Saturn's strong risk-adjusted capitalisation resulting from low risk retention and excellent group reinsurance support.
Saturn also profits from low investment risk as it maintains half of its investments in cash or short-term deposits. The ratings also factor in BP’s strength and commitment towards Saturn.
“Saturn benefits from low investment risk and has a very liquid portfolio. Half of its investments are held in cash or short-term deposits, and the other half is loaned back to BP with excellent liquidity conditions,” said a statement from A.M. Best.
Downward ratings actions could occur if there was a significant deterioration in Saturn’s risk-adjusted capitalisation linked to evidence of no financial support from its parent, BP.
