A.M. Best has affirmed the financial strength rating of “A (Excellent)” and the long-term issuer credit ratings of “a” for Queen City Assurance and Vine Court Assurance.
The outlook of these ratings is stable.
The ratings are reflective of the group’s balance sheet strength, categorised by A.M. Best as strongest, in addition to its strong operating performance, limited business profile and appropriate enterprise risk management.
As single-parent captives of The Kroger Co, the ratings are based on the individual and combined profiles of Queen City and Vine Court.
The financial resources and support available to both captives are also recognised in A.M. Best’s ratings.
Additionally, impacting the ratings are both captives’ excellent risk-adjusted capitalisation, substantial net income and underwriting profitability, as well as a growing capital base, conservative investment and a strong adherence to Kroger’s robust risk controls and overall risk culture.
Offsetting these positives partially is the company's risk concentration, which is the result of being single-parent captives of The Kroger, coupled with a substantial aggregate limit retained by the captives.
A consistently profitable operating performance in combination with a substantial increase in risk-adjusted capitalisation could result in a rating upgrade.
Fluctuation in the companies’ risk-adjusted capitalisation or risk-adjusted capital strength could result in up- or downgrades in ratings, as could a rating enhancement or deterioration in the capitalisation of the parent.
