A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+” of Solen
Versicherungen AG (SVAG) (Switzerland) and Noble Assurance
Company (Noble) (Texas, U.S.A.). The outlook of these Credit Ratings
(ratings) remains stable.
The ratings reflect SVAG’s balance sheet strength, which A.M. Best
categorises as strongest, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management.
SVAG’s balance sheet strength is supported by its risk-adjusted
capitalisation being at the very strong level, as measured by Best’s
Capital Adequacy Ratio (BCAR).The balance sheet strength assessment
benefits from a positive holding company impact, which reflects SVAG’s
affiliation with its ultimate parent, Royal Dutch Shell plc
(Shell), to which it remains important as a risk management tool. Shell
provides explicit support to SVAG in the form of a contingent capital
facility that will allow SVAG to replenish its capital quickly following
a sequence of very large losses.
A.M. Best expects SVAG’s risk-adjusted capitalisation to remain very
strong, supported by internal capital generation. The captive has a
strong operating performance track record, largely driven by robust
underwriting results, as demonstrated by a five-year average combined
ratio of 35.6%. Prospective performance is subject to volatility from
exposure to high severity, low frequency losses, reflecting the type of
business underwritten and the captive’s large gross and net maximum line
size. The captive does not purchase outward reinsurance cover for the
majority of its risks.
SVAG’s business profile assessment reflects its key role in the parent’s
overall risk management framework, as Shell’s principal captive.
Non-life risks largely consist of offshore and onshore property and
liability business, as well as the associated business interruption
cover. SVAG also reinsures life business emanating from the group’s
The FSR of A (Excellent) and the Long-Term ICR of “a+” have been
affirmed, each with a stable outlook, for Noble, a member of the SVAG
rating unit and a subsidiary of Shell. As a captive domiciled in Texas,
U.S.A., Noble writes Shell’s U.S. business and cedes 100% of its risks
to SVAG through a quota share reinsurance agreement.
A.M. Best remains the leading rating agency of alternative risk transfer
entities, with more than 200 such vehicles rated 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 rating(s) that have been published on
A.M. 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 A.M. 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 A.M. Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 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/20180622005377/en/