AM Best Affirms Credit Ratings of Castle Harbour Insurance Limited and Harrington Sound Insurance Limited; Withdraws Credit Ratings of Colliers Bay Insurance Limited

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Castle Harbour Insurance Limited (Castle Harbour) and Harrington Sound Insurance Limited (Harrington). In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” of Colliers Bay Insurance Limited (Colliers) (Cayman Islands). Together these three companies are known as the captives. The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Bermuda, unless otherwise specified. Concurrently, AM Best has withdrawn the ratings of Colliers, as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings of Castle Harbour and Harrington reflect their balance sheet strength, which AM Best categorizes as strongest, as well as their strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings of Colliers reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, very limited business profile and appropriate ERM.

The companies are captive insurance companies for Schlumberger Limited, a leading provider of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. The ratings consider the captives’ critical role as part of the parent company and their excellent operating performance during the past five years, providing tailored insurance coverage for certain property/casualty risks to subsidiaries of the parent. AM Best views the captives’ management and corporate strategy as positive rating factors, given the group’s conservative underwriting, operational goals and transparency. ERM is appropriate given the impact on its conservative risk culture, defined risk controls, and optimization of the captives’ capital and surplus. AM Best assesses the business profiles of Castle Harbour and Harrington as neutral, though they are single parent captives, as each writes a broad scope of business and has significant geographic diversification. The captives also carry relatively large limits in their general liability and property lines of business. AM Best also recognizes the financial flexibility afforded the captives by the well-rated parent.

Colliers was placed into run-off in late 2018 following the sale of Schlumberger Limited’s seismic acquisition risks business to a third party. AM Best considers Colliers’ business profile as very limited, as it no longer writes business and is in the process of settling its remaining open claims. The company receives rating enhancement from its parent based on its role and integration within the parent’s organization and AM Best’s expectation that management will continue to maintain the strongest level of capital in the captive to support any risks through the run-off period.

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 Understanding 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 rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.