AM Best has assigned a financial strength rating of “A” (Excellent) and a long-term Issuer credit rating of “a+” (Excellent) to Rodeo Insurance Company. The outlook assigned to these credit ratings is stable. Rodeo is a Texas-domiciled single-parent captive, wholly owned subsidiary of Sooner, which is an indirect, wholly owned subsidiary of ConocoPhillips. Rodeo mainly provides property damage and excess liability coverage to ConocoPhillips for its risks only in Texas. The ratings reflect Rodeo’s balance sheet strength, which AM Best assesses as very strong. The firm’s strong operating performance, limited business profile and appropriate enterprise risk management (ERM) were also noted. AM Best considers Rodeo’s limited business profile assessment to reflect its relatively narrow geographic concentration. Rodeo mainly provides property damage and excess liability coverage to ConocoPhillips for its risks only in Texas. The ratings company say Rodeo’s ERM demonstrates a culture of risk awareness and a framework to identify and manage its risks continually, including periodic reviews of its potential loss exposures through a specialist within industrial risks.
