AM Best affirms the Financial Strength Rating (FSR) of ‘A-’ (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ‘a-’ (Excellent) of Jamestown Insurance Company Limited. Concurrently, the agency withdraws these ratings as the Bermuda-domiciled captive has requested to no longer participate in the interactive rating process. The outlook of the ratings remains ‘stable’. The ratings reflect Jamestown's very strong balance sheet strength, which is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The captive's balance sheet also benefits from a strong track record of retained earnings. AM Best’s assessment also incorporates Jamestown’s adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM). The company's operating performance is largely supported by a steady flow of dividend and interest income. As a single-parent captive, Jamestown's primary mission is to provide (re)insurance coverage for specific risks, including property, control of well, redrill, pollution, and liability. The captive was formerly the sole insurance vehicle for Hess Corporation, and now serves the interests of its new ultimate parent, Chevron Corporation. The captive enhances underwriting flexibility for Chevron Corporation by offering direct access to the reinsurance market and supporting more stable, predictable pricing.
