AM Best has awarded the financial strength rating of ‘A-’ (Excellent) and the long-term issuer credit rating of ‘a-’ (Excellent) for Sustainable Assurance Company (SAC), headquartered in South Burlington, Vermont.
The outlook of these credit ratings has been assigned as ‘stable’.
The ratings demonstrate ORIAS’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
SAC’s balance sheet strength assessment is evidenced by its risk-adjusted capitalisation, which is at the strongest level. AM Best notes however, that the captive's high retention to surplus ratio leaves its risk-based capitalisation open to vulnerabilities in a stressed scenario.
They also highlight that the captive's ratings benefit from having a fiscally sound parent, the Lancaster County Solid Waste Management Authority (LCSWMA), a Pennsylvania municipal authority recognised for leadership in the solid waste industry.
The firm has received a limited business profile rating as a result of its product concentration on property and terrorism offerings limited to central Pennsylvania.
