A.M. Best has awarded the financial strength rating of “A (Excellent)” and issuer credit rating of “a+” to Heddington Insurance Limited and Iron Horse Insurance Company. The outlook for all ratings is stable.
Heddington’s ratings reflect its superior capitalisation, consistently positive operating results and the role that it plays as a captive insurance company of Chevron Corporation.
Iron Horse’s ratings reflect its adequate risk-adjusted capitalisation, explicit parental support, experienced management team and the role it plays as a direct captive subsidiary of Chevron.
Both company’s positive ratings are slightly offset by their high net loss exposures, as the coverages provided tend to result in claims that are characterised as low frequency but high severity.
“In its role as a captive insurer, Heddington, along with Iron Horse Insurance Company, currently provides broad and competitive global insurance products for Chevron and its subsidiaries. The insurance needs of Chevron are supplied through these captive operations (where appropriate) and the commercial market,” said A.M. Best in a release.
