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The ratings reflect Jupiter’s strong risk-adjusted capitalisation and good underwriting performance. An offsetting factor for the ratings remains Jupiter’s high level of risk retention, as well as its concentrated investment portfolio, which is held mostly with its parent, BP.
Jupiter’s risk-adjusted capitalisation deteriorated in 2011, following an increase of 71% in net premiums written to
In 2011, the company reported an improvement in its technical performance with an underwriting profit of
Jupiter has over 99% of its asset base (2011:
Upward rating actions are unlikely at present.
Downward rating actions may occur if there were a significant deterioration in the company’s risk-adjusted capitalisation and/or a material increase in the retention levels on Jupiter’s fronted programme (COMET). Additionally, any deterioration in the credit rating of BP could lead to negative actions being taken on Jupiter’s current rating.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: “Alternative Risk Transfer (ART)”; “Catastrophe Analysis in A.M. Best Ratings”; “Risk Management and the Rating Process for Insurance Companies”; “Rating Members of Insurance Groups”; and “Understanding Universal BCAR”. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
Associate Financial Analyst
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