A.M. Best has assigned a financial strength rating of “A (Excellent)” and issuer credit rating of “a” to Palms Insurance Company, based in the Cayman Islands.
Palms is a single parent captive wholly owned by NextEra Energy Captial Holdings, which in turn is wholly owned by NextEra Energy (NEE).
Palms accepts insurance risks from NEE and its affiliates providing specialised direct and assumed property and casualty coverage’s, workers’ compensation, automobile liability and employers’ liability and property risk.
The ratings reflect Palm’s excellent risk adjusted capitalisation, history of consistently strong operating performance, sound risk management capabilities and conservative balance sheet strategies.
Partially offsetting the positive ratings is Palms’ limited market scope and high net loss potential from a single, severe occurrence relative to surplus.
“Nevertheless, this is somewhat mitigated by the company’s excellent loss history, favourable geographic spread of risk and the history of support of Palm’s strong surplus position by its parent, NextEra Energy Captial Holdings,” said a statement from the ratings firm.