AM Best affirms the financial strength rating of 'A' (Excellent) and the long-term issuer credit rating of 'a+' (Excellent) of Sooner Insurance Company. The outlook of these ratings is stable. Sooner, based in Colchester, Vermont, is the primary captive insurer for its ultimate parent, ConocoPhillips. The captive mainly provides property damage and excess liability coverage to ConocoPhillips and its global subsidiaries and joint ventures. The ratings reflect Sooner's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The agency says Sooner's balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), generally favourable loss reserve development and low underwriting leverage. The captive's most significant asset is a loan-back to ConocoPhillips, an arrangement AM Best views as relatively low risk given the parent-subsidiary affiliation and the parent's strong balance sheet and history of positive earnings. Sooner has a sustained history of strong operating performance, with underwriting results and return on revenue metrics outperforming the commercial casualty composite. AM Best notes the captive's loss experience has been largely favourable for more than a decade, due in large part to ConocoPhillips's risk management programmes. In 2025, underwriting results weakened on increased claims costs but remained profitable, with net investment income on the loan-back continuing to drive earnings. The neutral business profile assessment reflects Sooner's position as the primary captive for its parent, while the ratings also recognise the captive's strategic role for ConocoPhillips and the parent's ongoing implicit and explicit support.
