A.M. Best has affirmed the financial strength rating of “A” (Excellent) and the issuer credit ratings of “a” of Castle Harbour Insurance, Harrington Sound Insurance and Colliers Bay Insurance (Cayman Islands).
The ratings and outlook reflect what A.M. Best deems to be the captives’ excellent capitalisation and conservative operating strategy.
The ratings also consider the captives’ critical role and favourable profile as part of the parent company, Schlumberger Limited, as well as its excellent operating performance during the past five years, providing tailored insurance coverage to certain subsidiaries of the parent for certain property and casualty risks.
Partially offsetting these positive rating factors are the captives’ relatively large limits in its general liability and property lines of business. Nevertheless, A.M. Best has stated that it “recognises the substantial financial resources of the captives and its parent”.
A.M. Best views the captives’ enterprise risk management practices as strong given the impact on its conservative risk culture, defined risk controls and the optimisation of its capital and surplus.
The agency has also stated that it expects the captives’ future operating performance to be stable but strong, and the stable earnings profile “should further support the companies to control growth and business writings, which are consistent with the captives’ capital and surplus position”.
