A.M. Best Assigns Issue Credit Rating to Oil Casualty Insurance Ltd.’s Deferrable Subordinated Debentures

OLDWICK, N.J.--()--A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb” to the $200 million 8.00% deferrable subordinated debentures due Sept. 15, 2034, issued in 2004 and amended in 2015, by Oil Casualty Insurance Ltd. (OCIL) (Bermuda). The outlook assigned to the Credit Rating (rating) is stable.

During the year ended Nov. 30, 2016, the company repurchased and retired a portion of the debentures with a par value of $5 million. During prior years, the company had repurchased and retired a portion of the debentures with a par value of $51.6 million. At Nov. 30, 2016, the outstanding total was $143.4 million, which is included in loans payable in the consolidated balance sheet.

A.M. Best notes that while financial leverage is well within A.M. Best’s guidelines, coverage is somewhat lower than guidelines indicate. A mitigating factor is the liquid asset profile of OCIL, coupled with a relatively long claim payout pattern.

OCIL writes predominately excess general liability insurance throughout the United States and the world. From its inception, OCIL has operated with an energy industry owned insurance company philosophy with benefits of share ownership accruing continually for the shareholder members.

This press release relates to Credit Ratings 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.

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Contacts

A.M. Best
Guilherme (Guy) Monteiro Simoes, +1-908-439-2200, ext. 5301
Senior Financial Analyst
guy.simoes@ambest.com
or
Susan Molineux, +1-908-439-2200, ext. 5829
Senior Financial Analyst
susan.molineux@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Guilherme (Guy) Monteiro Simoes, +1-908-439-2200, ext. 5301
Senior Financial Analyst
guy.simoes@ambest.com
or
Susan Molineux, +1-908-439-2200, ext. 5829
Senior Financial Analyst
susan.molineux@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com