AM Best Affirms Credit Ratings of Castle Harbour Insurance Limited and Harrington Sound Insurance Limited
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of 'a+' for Castle Harbour Insurance Limited and Harrington Sound Insurance Limited. These captive insurance companies serve Schlumberger Limited (SLB), with a stable outlook. The ratings reflect their strong balance sheet strength, excellent operating performance, and suitable enterprise risk management practices. Both companies demonstrate robust risk-adjusted capitalization and provide customized insurance coverages, crucial for Schlumberger's operations.
- Affirmation of A (Excellent) FSR and 'a+' ICR for both captive insurance companies.
- Strong balance sheet strength categorization as strongest by AM Best.
- Excellent historical operating performance over several years.
- Highest risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR).
- Significant geographic diversification and broad scope of business.
- None.
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). These companies are captive insurance companies for Schlumberger Limited (Schlumberger) [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 categorizes as strongest, as well as their strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The companies are captive insurance companies for Schlumberger, a leading provider of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. The ratings reflect 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 excellent operating performance over several years, the ratings take into consideration the important role the captives play in providing their parent customized insurance coverages. The captives carry relatively large limits in the general liability and property lines of business; however, each writes a broad scope of business and has significant geographic diversification. ERM practices are appropriate given the conservative risk culture across the Schlumberger enterprise, defined controls and optimization of the captives’ capital and surplus. Further, AM Best recognizes the financial flexibility afforded the captives by their parent company as well as their strategic importance across Schlumberger.
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 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 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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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