A.M. Best has assigned a financial strength rating of A (Excellent) and issuer credit ratings of “a” to Castle Harbour Insurance, Harrington Sound Insurance and Colliers Bay Insurance. The outlook assigned to the Bermuda-based captives is stable.
The ratings and outlook reflect the excellent capitalisation and conservative operating strategy of the captives. The ratings also consider the critical role and favourable profile the captives enjoy as part of their parent company, oilfield servicing firm Schlumberger Limited. The rating also takes into account the excellent operating performance of the captives during the past five years.
Partially offsetting these positive rating factors are the relatively large limits in general liability and property lines of business held by the captives.
A.M. Best views the management and corporate strategy as a strengthening factor in its ratings, given the group’s conservative underwriting, operational goals and transparency.
Other factors considered in A.M. Best’s ratings process include the diversification in line of business and geography, as well as the support and commitment of the parent and the group’s mission.
A.M. Best expects the future operating performance to be stable but strong, and the stable earnings profile should further support the companies to control growth and business writings, which are consistent with the capital and surplus position of the captives.
