A.M. Best has affirmed the financial strength rating of “A (Excellent)” and issuer credit rating of “a” of Sooner Insurance Company, based in Burlington, Vermont.
“The ratings are based on Sooner’s excellent capitalisation, history of consistently producing net underwriting income and net income, as well as being the captive insurer for its ultimate parent, ConocoPhillips,” said A.M. Best in a recent statement.
The ratings also consider the parent’s overall risk management strategy and Sooner’s core involvement in this strategy.
Partially offsetting these positive rating factors is the possible change in Sooner’s net retentions that could happen year over year, as well as the limited diversification of business written, which is expected with a single parent captive.
A.M. Best is unlikely to upgrade Sooner’s ratings over the long term due to its limited market profile.
Key factors that could lead to rating downgrades are a significant loss of surplus, consistent adverse reserve development and/or a significant change in Sooner’s risk profile.
