A.M. Best has upgraded the long-term issuer credit rating from “a” to “a+” and affirmed the financial strength rating of A (Excellent) of Queen City Assurance and Vince Court Assurance, the captive insurers of US food retail giant The Kroger Company.
The outlook of the ratings for the captives, which are both domiciled in Vermont, is stable.
The ratings reflect the group’s “strongest” balance sheet, its strong operating performance, neutral business profile, and appropriate enterprise risk management (ERM).
The ratings consider the captives’ critical role as the captive insurers for Kroger, and their excellent historical operating performance, providing tailored insurance coverage for property and casualty risks.
As each captive writes a broad scope of business for its parent and has significant geographic diversification across the US, the business profiles are assessed as neutral.
According to A.M. Best, ERM is appropriate, due to the impact on its conservative risk culture, defined risk controls, and optimisation of the captives’ capital and surplus.
The ratings agency added that it “also recognises the significant capitalisation and financial flexibility afforded the captives by its well-rated parent”.
