OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of Queen City Assurance, Inc. (Queen City) and Vine Court Assurance Incorporated (Vine Court) (both domiciled in Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect group’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The ratings are based on Queen City and Vine Court’s individual and combined profiles as single-parent captives of The Kroger Co. The ratings also are based on both captives’ excellent risk-adjusted capitalization, substantial net income and underwriting profitability, a growing capital base, conservative investments and a strong adherence to the parent’s robust risk controls and overall risk culture. Additionally, return measures on a group and individual basis are consistently positive, reflective of the organization’s prudent pricing and deployment of capital.
These significant strengths are offset partially by the companies’ risk concentration, which is the result of being single-parent captives of The Kroger Co., coupled with a substantial aggregate limit retained by the captives. Nevertheless, A.M. Best recognizes the importance and mission of the captives and the substantial financial resources and support available to them as part of The Kroger Co.
Key triggers that could result in a ratings upgrade include a consistently profitable operating performance coupled with a substantial increase in risk-adjusted capitalization. Key rating triggers that could result in a downgrade include a precipitous decline in the companies’ risk-adjusted capital strength. Either a rating enhancement or deterioration in the capitalization of the parent could result in an upgrade or a downgrade of the ratings of Queen City and Vine Court.
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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