Cedar Court Indemnity Company, the parent captive insurer of Honeywell International, has requested to be withdrawn from A.M. Best’s ratings process.
Cedar Court’s financial strength rating of “A (Excellent)” and long-term issuer credit rating of “a-” was affirmed in early June, but after the Burlington-domiciled captive’s management requested to be dropped from the process, the ratings were withdrawn.
According to A.M. Best, the ratings reflect Cedar Court’s strong risk-adjusted capitalisation, conservative operating strategy and the critical role it plays as a parent captive insurer of Honeywell, which, as a diversified organisation, serves customers worldwide across the aerospace market, control technologies for buildings, turbochargers and performance materials.
Partially offsetting these positive rating factors are Cedar Court’s relatively large reserves and incurred but not reported reserves, as well as volatile underwriting performance in recent years.
Despite volatility, A.M. Best recognises the role Cedar Court plays, its mission, and the ability to accept risk and volatility in exchange for availability and pricing. Its captive orientation also considers the substantial financial resources of its parent, Honeywell.
