A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Sooner Insurance Company. The outlook for both ratings is stable.
The ratings reflect Sooner’s excellent capitalisation, history of consistent operating profitability driven by favorable underwriting results, conservative reserve levels and the position it holds as the captive insurer for its ultimate parent, ConocoPhillips.
A.M. Best’s decision has also considered the level of commitment on the part of ConocoPhillips, whose management incorporates Sooner as a core element in its overall risk management program.
Partially offsetting these positive rating factors are Sooner’s significant reinsurance credit risk stemming from the large limits offered on its policies and the possible change in the captive’s net retentions that could happen year over year, as well as the limited diversification of business written, which is expected with a single parent captive.
Sooner provides property damage, business interruption and general liability insurance to ConocoPhillips and its subsidiaries worldwide.
Sooner has a history of generally positive underwriting results and strong operating return measures. Over a 10-year period, the company’s loss experience has remained favorable due, in part, to ConocoPhillips’ strong risk management programs.
