A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the long-term issuer credit ratings (ICR) of “a+” of Castle Harbour Insurance (Castle Harbour) and Harrington Sound Insurance (Harrington).
These companies are captive insurance companies for Schlumberger, a provider of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide, and both are domiciled in Bermuda.
The outlook of these credit ratings is stable.
The ratings of Castle Harbour and Harrington reflect the balance sheet strength, which AM Best categorised as strongest, as well as their strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
A.M. Best stated that the ratings reflect that Castle Harbour and Harrington maintain the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR).
A.M. Best stated: “In addition to excellent operating performance over several years, the ratings take into consideration the important role the captives play in providing their parent customised insurance coverages.”
“The captives carry relatively large limits in the general liability and property lines of business; however, each writes a broad scope of business and has significant geographic diversification,” A.M. Best added.
ERM practices are appropriate given the conservative risk culture across the Schlumberger enterprise, defined controls and optimisation of the captives’ capital and surplus.
Further, A.M. Best recognised the financial flexibility afforded the captives by their parent company as well as their strategic importance across Schlumberger.
