The captive insurance company of the China National Offshore Oil Corporation (CNOOC) has received positive financial strength and issuer credit ratings from A.M. Best.
ICM Assurance, which is domiciled in Barbados, received a financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” thanks to its strong risk-adjusted capitalisation, favourable performance record, and conservative balance sheet strategies.
The captive provides coverage for property damage, operators extra expense, pollution liability, business interruption and onshore and offshore liability, as well as property under construction, to CNOOC and affiliates and subsidiaries.
Partially offsetting these positive rating factors is ICM Assurance’s high gross loss, which according to A.M. Best, is potentially due to the nature of the insurance provided.
“This is also partially tempered by the extensive loss control and group-wide safety programmes provided by its ultimate parent, which helps to mitigate losses arising from its parent’s ordinary course of business,” according to A.M. Best.
