OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Cedar Court Indemnity Company (Cedar Court) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect Cedar Court’s strong risk-adjusted capitalization, conservative operating strategy and the critical role it plays as a parent captive insurer of Honeywell International Inc. (Honeywell) [NYSE: HON]. Honeywell is a global, Fortune 100 diversified technology and manufacturing organization, serving customers worldwide in the aerospace market, control technologies for buildings, turbochargers and performance materials. As a captive insurer of Honeywell, Cedar Court provides insurance products and services to Honeywell’s various subsidiaries for certain liability risks.
Partially offsetting these positive rating factors are Cedar Court’s relatively large reserves and incurred but not reported reserves, as well as volatile underwriting performance in recent years. Despite volatility, A.M. Best recognizes the role Cedar Court plays, its mission, and the ability to accept risk and volatility in exchange for availability and pricing. Its captive orientation also considers the substantial financial resources of its parent, Honeywell.
A.M. 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 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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