Heddington Insurance has requested to no longer participate in A.M. Best’s interactive rating process, despite the agency affirming its financial strength rating of “A” (Excellent) and the issuer credit rating of “a+”.
The ratings reflect what A.M. Best has called Heddington’s “superior capitalisation”, consistently positive operating results and the role it plays as a captive insurance company of Chevron Corporation.
The agency stated: “These positive rating factors are partially offset by Heddington’s high net loss exposures, as the coverages provided tend to result in claims that are characterized as low frequency but high severity.”
These offsetting factors are somewhat mitigated by the captive’s good loss history supported by steady investment income.
Chevron did not respond to a request for comment on why they asked to be removed from A.M Best's rating process.
