A.M. Best has awarded the financial strength rating of “A (Excellent)” and issuer credit rating of “a” to Radius Insurance Company, based in the Cayman Islands. The outlook for both ratings is stable.
Radius’ ratings are based on its excellent capitalisation, history of profitable business written from a predecessor captive, as well as the position it holds as the captive insurer for its ultimate parent, Phillips 66.
“Partially offsetting these positive rating factors are Radius’ exposure to large losses due to the limits offered on its policies as well as its significant dependence on reinsurance protection,” said A.M. Best.
Key rating triggers that could result in positive rating actions would be Radius generating consistent net income, limited losses and meeting and/or exceeding its business plan over the long term.
Key rating triggers that could result in negative rating actions would be Radius generating consistent net losses, numerous large claims and/or not executing its business plan over the long term.
