A.M. Best Affirms Ratings of Iron Horse Insurance Company

A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a+" of Iron Horse Insurance Company (Burlington, VT). The outlook for both ratings is stable.

The ratings reflect Iron Horse's superior risk-adjusted capitalization, experienced management team and the role it plays as a direct captive subsidiary of Chevron Corporation (Chevron) (NYSE:CVX).

These positive rating factors are partially offset by Iron Horse's high net loss exposures, as the coverages provided tend to result in claims that are characterized as low frequency but high severity. This is somewhat mitigated by the captive's ability to secure capital from Chevron in the event of a covered shock loss. Iron Horse directly benefits from the attention of Chevron's experienced risk management team. Iron Horse also gains from Chevron's global operations, which provide favorable geographic spread of risk and line of business diversification.

In its role as a captive insurer, Iron Horse along with Heddington Insurance Limited, Heddington Insurance (U.K.) Limited and other active Chevron captives, currently provide broad and competitive global insurance products for Chevron and its subsidiaries. The insurance needs of Chevron are supplied through these captive operations, where appropriate, and the commercial market. Iron Horse and the other Chevron captives, provide comprehensive coverage above Chevron's internal retentions, while its reinsurance is placed through a corporate wide plan with the world's significant providers of capacity, resulting in a diversified and balanced distribution of reinsurers.

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.

For current Best's Credit Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.