A.M. Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings (Long-Term ICR) of “a+” of Castle Harbour Insurance (Castle Harbour) and Harrington Sound Insurance (Harrington).
The financial strength rating of A (Excellent) and the long-term ICR of “a” of Colliers Bay Insurance (Colliers) (Cayman Islands) have also been affirmed.
A.M. Best has withdrawn the ratings of Colliers, as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The rating company categorises Castle Harbour and Harrington balance sheet strength as strongest, as well as their strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings of Colliers reflect its balance sheet strength, which A.M. Best categorised as very strong, as well as its adequate operating performance, very limited business profile and appropriate ERM.
The 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.
The ratings consider the captives’ critical role as part of the parent company as well as the excellent operating performance during the past five years, providing tailored insurance coverage for certain property/casualty risks to subsidiaries of the parent.
A.M. Best explained that the business profiles of Castle Harbour and Harrington are neutral, but are single-parent captives, as each captive writes a broad scope of business and has significant geographic diversification.
The captives also carry relatively large limits in their general liability and property lines of business. A.M. Best said it recognises the financial flexibility afforded the captives by the well-rated parent.
The company received a rating enhancement from its parent, based on its role and integration within the parent’s organisation and it’s expected that management will continue to maintain the strongest level of capital in the captive to support any risks through the run-off period.