A.M. Best has affirmed the financial strength rating of “A (Excellent)” and the issuer credit rating of “a+” of Iron Horse Insurance Company.
The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings in response to Iron Horse management’s request to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect Iron Horse’s adequate risk-adjusted capitalisation, explicit parental support, experienced management team and the role it plays as a direct captive subsidiary of Chevron Corporation.
These positive rating factors are partially offset by Iron Horse’s high net
loss exposures, as the coverage provided tends to result in claims that are
characterised as low frequency but high severity.
This is mitigated by the captive’s ability to secure capital from Chevron in the
event of a covered shock loss. Iron Horse directly benefits from the
attention of Chevron’s experienced risk management team.
Iron Horse currently provides broad and competitive global insurance products for Chevron and its subsidiaries. The insurance needs of Chevron are supplied through the captive operations and the commercial market.
