AM Best has assigned a financial strength rating of ‘A-’ (Excellent) and a long-term issuer credit rating of ‘a-’ (Excellent) to OneNexus Oklahoma Captive Corp., with a ‘stable’ outlook for both ratings. The agency says the ratings reflect OneNexus’ very strong balance sheet, adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM) framework. OneNexus is a protected cell captive domiciled in Oklahoma and began underwriting in 2023. It provides contractual liability cover for the decommissioning of oil and gas wells and facilities operated by its parent company, OneNexus LLC. The policies guarantee a defined benefit to well owners or operators at the point of decommissioning, supporting the parent’s asset retirement obligations. AM Best notes that the captive’s balance sheet strength is underpinned by strongest-level risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio (BCAR). This is supported by permanent regulatory capital via a letter of credit from a highly rated reinsurer, along with a conservative investment portfolio comprised of fixed income, short-term instruments, and cash equivalents. The captive currently does not utilise reinsurance. Although OneNexus is a recent market entrant with limited historical data, the agency considers its early financial results adequate, citing positive earnings in 2024 and a focused, well-managed underwriting approach. Future growth is expected to depend on evolving regulatory requirements around financial assurance for oil and gas operators, and broader market uptake of its offering. The stable outlook reflects AM Best’s expectation that OneNexus will continue to execute its business plan effectively while maintaining very strong capitalisation and sound financial performance.
