A.M. Best Assigns Ratings to ICM Assurance Ltd
October 20 2015 - 10:47AM
Business Wire
A.M. Best has assigned a financial strength rating of A-
(Excellent) and an issuer credit rating of “a-” to ICM Assurance
Ltd (ICMA) (St. Michael, Barbados). The outlook assigned to
both ratings is stable.
The ratings reflect ICMA’s strong risk-adjusted capitalization,
favorable performance record, sound risk management capabilities,
with a focus on sustaining solid capitalization and underwriting
performance, and conservative balance sheet strategies. The ratings
also consider ICMA’s important role as a single-parent captive and
the implied support provided by its parent, CNOOC Limited (CNOOC)
[ADR-traded NYSE:CEO], whose management incorporates ICMA as a core
element of CNOOC’s overall risk management safety and risk
mitigation programs.
ICMA is a single-parent or pure captive insurer wholly owned by
CNOOC International Limited, which in turn is wholly owned by
CNOOC.
Partially offsetting these positive rating factors are ICMA’s
high gross loss potential due to the nature of the insurance
provided, which is subject to high severity and significant
dependence on reinsurance. This is partially tempered by the
extensive loss control and group-wide safety programs provided by
its ultimate parent, which helps to mitigate losses arising from
its parent’s ordinary course of business. Extensive reinsurance
protection, placed with a panel of financially strong reinsurers,
also limits the company’s net exposure to shock loss events. Also
noteworthy, is the significant percentage of assets loaned to its
parent. However, these investments are very liquid and repayable on
demand; hence, there is limited counterparty risk due to the
affiliation of the two companies.
ICMA provides coverage for property damage, operators extra
expense, pollution liability, business interruption and onshore and
offshore liability, as well as property under construction, to
CNOOC and affiliates and subsidiaries related to risks in which
CNOOC has ownership interests.
ICMA has a track record of reporting consistently strong
operating results. The captives’ loss experience has remained
favorable due in part to no material catastrophe events, its
inherent knowledge of the business it underwrites and the strong
loss control programs adopted at the parent level. The risk
management team conducts periodic reviews of ICMA’s potential loss
exposures through an industrial risks specialist.
A.M. Best notes that despite its diversified business platform,
sustaining a trend of stable earnings is a challenge for ICMA due
to the nature of the business.
A.M. Best believes that ICMA is well-positioned at its current
rating levels, and the ratings and outlooks are not expected to be
upgraded or downgraded in the near term. However, revisions to the
ratings are likely to occur if there are material and sudden
changes to ownership, strategy, parental commitment or significant
changes in the company’s financial condition caused by
catastrophes.
A.M. Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the
United States and throughout the world. For current Best’s Credit
Ratings and independent data on the captive and alternative risk
transfer insurance market, please visit www.ambest.com/captive.
This press release relates to rating(s) that have been
published on A.M. Best's website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please visit A.M.
Best’s Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151020006284/en/
A.M. Best CompanyAlexander Sarfo, 908-439-2200, ext.
5779Senior Financial
Analystalexander.sarfo@ambest.comorGary Davis,
908-439-2200, ext. 5665Assistant Vice
Presidentgary.davis@ambest.comorChristopher Sharkey,
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
Cnooc (NYSE:CEO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cnooc (NYSE:CEO)
Historical Stock Chart
From Apr 2023 to Apr 2024