AM Best affirmed the financial strength rating of A (Excellent) and the long-term credit rating of “a+” (Excellent) of
The ratings reflect Sooner’s balance sheet strength, which AM Best rates as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Sooner’s balance sheet strength is underpinned by its highest risk-adjusted capitalization as measured by Best’s capital adequacy ratio (BCAR), generally favorable development of loss reserves and low leverage. subscription. Although Sooner has a large loan to its ultimate parent company, ConocoPhillips [NYSE: COP]it is considered relatively low risk due to this affiliation, as well as the parent’s strong balance sheet and positive income history.
Sooner has a long track record of strong operating performance, driven by strong underwriting earnings, with most performance measures outperforming the industry composite. The company’s loss experience has remained favorable for more than a decade due in large part to ConocoPhillips’ strong risk management programs. Sooner is a central part of ConocoPhillips’ ERM program.
The assessment of the company’s business profile reflects its position as a captive insurer of its ultimate parent company. Sooner’s underwriting risks primarily provide property damage coverage and additional liability coverage to ConocoPhillips and its global subsidiaries and joint ventures.
Sooner’s ERM has a culture of risk awareness and a framework to continuously identify and manage various types of risk, including periodic reviews of its potential loss exposures through an industrial risk specialist, a process that AM Best considers very appropriate for the company’s risk profile. The ratings also reflect ConocoPhillips’ implicit support and the critical role the captive plays in its ERM program.
AM Best remains the leading rating agency for alternative risk transfer entities, with over 200 such vehicles rated in
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Source: AM Best