AM Best Affirms Credit Ratings of OneNexus Oklahoma Captive Corp.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of OneNexus Oklahoma Captive Corp. (OneNexus) (Oklahoma City, OK). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect OneNexus’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

OneNexus is a protected cell captive insurer domiciled in Oklahoma, which was incorporated in 2021. In 2023, OneNexus began providing contractual liability insurance policies (CLIP) for its direct parent, OneNexus, LLC. OneNexus, LLC enters into agreements with energy companies to cover costs associated with decommissioning oil and gas wells. OneNexus guarantees a defined benefit amount to the owner/operator of the wells at the time the well is chosen/required to be decommissioned.

OneNexus’ very strong balance sheet strength assessment is supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) and reflects permanent regulatory capital in the form of a letter of credit pledged by a highly rated reinsurance company. The balance sheet strength assessment also reflects the low asset risk from the investment portfolio composed of fixed income securities, short-term investments, cash and cash equivalents. Reserves are actively monitored by management through the company’s risk modeling system.

Operating performance is assessed as adequate. OneNexus has limited historical operating results as a start-up company. However, early results are considered adequate as it posted positive earnings in 2024 and 2025. Underwriting earnings are projected to grow as OneNexus ramps up operations.

OneNexus’ business profile is assessed as limited given high product concentration in its niche business. Partially mitigating the company’s high product concentration is the quality of specialized data and analytics resident within OneNexus. Growth in the business will depend largely on regulatory requirements requiring financial assurance by oil and gas operators, as well as market acceptance.

The OneNexus ERM framework is assessed as appropriate, with internal and external risks subject to regular monitoring.

The stable outlooks reflect AM Best’s expectation that OneNexus will execute its business plan, while maintaining an overall balance sheet assessment in the very strong range, supported by risk-adjusted capitalization at the strongest level, as measured by BCAR.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.