AM Best has affirmed the financial strength rating of ‘A’ (Excellent) and the long-term issuer credit rating of ‘a+’ (Excellent) of Solen Versicherungen (SVAG) and Noble Assurance Company, captives owned by Shell. The outlook of these credit ratings remains ‘stable’. The agency notes that these ratings reflect SVAG’s balance sheet strength, which was categorised as ‘very strong’, as well as its strong operating performance, neutral business profile, and appropriate enterprise risk management. The captive has a track record of strong operating performance, underpinned by robust underwriting results. SVAG’s key performance metrics are expected to remain supportive of a strong assessment over the medium term. According to AM Best, SVAG’s business profile assessment reflects its key role in supporting its ultimate parent’s overall risk management framework as Shell’s principal captive. The captive’s non-life business mostly consists of offshore and onshore property and liability risks, as well as the associated business interruption cover. SVAG also writes a small book of life business derived from reinsurance of the group’s pension liabilities. Meanwhile, Noble's ratings reflect its status as a member of the SVAG rating unit and Shell subsidiary. As a captive domiciled in Texas, Noble underwrites Shell’s US business and cedes the risks to SVAG, its sister company, through a quota share reinsurance agreement.
