AM Best Assigns Credit Ratings to S-Squared Insurance Company, Inc.
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to
The ratings reflect S2’s 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).
The stable outlooks consider AM Best's expectation that S2’s balance sheet strength assessment fundamentals will continue to strengthen over the medium term, with internal profit generation and retention levels that support continued growth in the company’s surplus, while maintaining profitable operating performance.
S2’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This captive insurer is a strategic and integrated extension of Micron Technology, Inc.’s [Nasdaq: MU] (Micron) corporate ERM strategy, and Micron provides S2 capital and financial flexibility. S2’s risk-adjusted capitalization is expected to remain at the strongest level, supported by increased retention of earnings. S2 has a conservative investment portfolio with conservative loss reserving strategies.
S2’s operating performance reflects actuarially needed premium for its coverage offerings of
S2's limited business profile reflects its position as a single-parent captive of Micron with product and geographic concentration. Property exposures are concentrated in the
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in
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.
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Source: AM Best
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