AM Best Affirms Credit Ratings of Castle Harbour Insurance Limited and Harrington Sound Insurance Limited

Rhea-AI Summary

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a+' (Excellent) for Castle Harbour Insurance Limited and Harrington Sound Insurance Limited, both captive insurers for Schlumberger Limited (SLB). The outlook for these ratings is stable. The captives exhibit strong balance sheet strength and operating performance, with considerable geographic diversification. They play a strategic role in SLB's enterprise risk management framework, providing tailored insurance coverage for the company.

Positive

• Affirmed Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a+' (Excellent).
• Strong balance sheet strength and operating performance over the past five years.
• Strategically important for SLB's enterprise risk management.
• Maintain strongest level of risk-adjusted capitalization.
• Significant geographic diversification and large coverage limits.

Negative

• None.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of Castle Harbour Insurance Limited (Castle Harbour) and Harrington Sound Insurance Limited (Harrington). These companies are captive insurance companies for Schlumberger Limited (SLB) [NYSE: SLB]. The outlook of these Credit Ratings (ratings) is stable. Both captives are domiciled in Bermuda.

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

The companies are captive insurers for SLB, a global technology company in the energy industry. The ratings affirm that Castle Harbour and Harrington maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), in addition to displaying strong operating performance results over each of the past five years. The ratings also take into consideration the captives’ strategic importance in providing tailored insurance coverages for the parent and its subsidiaries. While each captive carries relatively large limits within its respective designated coverages for the parent in the general liability and property lines of business, each writes a broad scope of business and has considerable geographic diversification.

As captive insurers of SLB, the companies are an integral part of the parent’s ERM framework, which includes defined risk controls and optimization of the captives’ capital. Further, AM Best recognizes the financial flexibility afforded by their parent company, as well as their strategic importance across SLB.

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.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221111005487/en/

Chul Hyung Lee

Senior Financial Analyst

+1 908 439 2200, ext. 5036

chul.lee@ambest.com

Daniel Teclaw

Associate Director

+1 908 439 2200, ext. 5394

daniel.teclaw@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Al Slavin

Communications Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

Source: AM Best

FAQ

What are the credit ratings for Schlumberger's captive insurers?

AM Best affirmed the Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of 'a+' (Excellent) for Schlumberger's captive insurers, Castle Harbour Insurance and Harrington Sound Insurance.

What is the outlook of the credit ratings for Castle Harbour and Harrington?

The outlook for the credit ratings of Castle Harbour and Harrington is stable.

Why are Castle Harbour and Harrington important to SLB?

Castle Harbour and Harrington are integral to SLB’s enterprise risk management and provide tailored insurance coverages that are strategically important to the company.

How does AM Best assess the balance sheet strength of SLB's captive insurers?

AM Best assesses the balance sheet strength of Castle Harbour and Harrington as the strongest, supported by their strong operating performance and risk-adjusted capitalization.