A.M. Best Co. has upgraded the financial strength rating (FSR) to A++ (Superior) from A+ (Superior) and issuer credit ratings (ICR) to "aa+" from "aa" of Ancon Insurance and Petroleum Casualty Group and its member companies, Ancon Insurance Company, Inc. (Burlington, VT) and Petroleum Casualty Company (Houston, TX). The outlook for both ratings is stable.
The ratings reflect the group's superior capitalization, consistently strong operating results and exemplary risk management strategies. The ratings also consider the extensive experience and level of commitment of the group's parent, Exxon Mobil, whose management incorporates the group as a core element in the overall risk management program of Exxon Mobil.
A.M. Best has taken a favorable view of the group's overall profile within the parent's structure and recognizes the benefits inured from this. Particular attention is paid to the fact that the senior management of Exxon Mobil is intimately involved in the operation of the captive. Ancon is one of the largest captives in the United States and benefits from its history of more than 65 years operating as a captive insurer.
These positive rating factors are partially offset by the group's high net per occurrence loss potential stemming from large loss events. However, this is completely mitigated by the excellent loss history, favorable geographic spread of risk and the parent's history of supporting the group's strong surplus position.
A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.
Most Popular Articles