A.M. Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a+” of Sooner Insurance Company, the captive insurance company of ConocoPhillips, an American multinational energy corporation.
The ratings reflect Sooner’s balance sheet strength, which A.M. Best categorises as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
These factors are supported by Sooner’s strongest risk-adjusted capitalisation, consistently favourable operating results, favourable loss reserve development and low underwriting leverage.
A.M. Best said that the ratings also consider the level of commitment on the part of its ultimate parent, ConocoPhillips, whose management incorporates Sooner as a core element in its overall risk management programme.
Although the majority of Sooner’s capital is loaned to its parent, it is considered to have relatively low risk due to this affiliation, as well as the parent’s strong balance sheet and history of positive earnings.
A.M. Best explained that the ratings also reflect the implicit support of ConocoPhillips and the critical role the captive plays in its enterprise risk management programme.
