AM Best Affirms Credit Ratings of ICM Assurance Ltd
December 10 2020 - 1:50PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-” of ICM
Assurance Ltd (ICMA) (St. Michael, Barbados). The outlook of these
Credit Ratings (ratings) is stable.
The ratings reflect ICMA’s balance sheet strength, which AM Best
categorizes as strongest, as well as its adequate operating
performance, neutral business profile and appropriate enterprise
risk management (ERM).
ICMA is a single-parent captive insurer, wholly owned by CNOOC
International Limited, which is in turn wholly owned by CNOOC
Limited (CNOOC) [ADR-traded NYSE: CEO], the ultimate parent.
ICMA’s risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), is categorized as strongest, and AM
Best expects it to remain at a similar level prospectively. The
balance sheet strength assessment also considers ICMA’s low
underwriting leverage and strong liquidity measures. Due to the
nature of the insurance ICMA provides for CNOOC’s oil and gas
exploration, it carries a high gross loss potential and remains
exposed to high severity events. However, this risk is offset
partially by extensive loss control and safety programs provided by
CNOOC, which are intended to mitigate losses arising from the
enterprise’s ordinary course of business. In addition, reinsurance
protection is placed to limit ICMA’s net exposure to shock loss
events. Also noteworthy is the significant percentage of assets
that ICMA has loaned to its parent. These investments are liquid
and repayable on demand, so there is limited counterparty risk due
to the affiliation of the two companies.
ICMA has experienced adequate operating performance, with
profitable results in periods absent of large underwriting losses.
While results on average have been sound over the most recent five
years, there are occasional outsized losses that have caused
volatility. Due to the absence of major catastrophe events, coupled
with inherent business knowledge and loss control, the captive’s
loss experience has remained favorable.
The business profile assessment of neutral is based upon the
global liability and property coverages ICMA provides to its parent
company and affiliates; and its appropriate ERM is driven by ICMA’s
role as a single-parent captive of CNOOC, whose management
incorporates ICMA as an element of its overall risk management and
risk mitigation program.
AM 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 Credit Ratings that have been
published on AM 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 see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201210005978/en/
Adrienne Stark Senior Financial Analyst +1 908
439 2200, ext. 5526 adrienne.stark@ambest.com Susan
Molineux Director +1 908 439 2200, ext. 5829
susan.molineux@ambest.com Christopher Sharkey Manager,
Public Relations +1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com Jim Peavy Director,
Communications +1 908 439 2200, ext. 5644
james.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