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A.M. Best Assigns Ratings to INPEX Insurance, Ltd.

PR-Inside.com: 2014-09-02 18:02:01

A.M. Best Assigns Ratings to INPEX Insurance, Ltd.

A.M. Best
Seewon Oh, +852-2827-3404
Senior Financial Analyst
seewon.oh@ambest.com
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Moungmo Lee, +852-2827-3402
General Manager
moungmo.lee@ambest.com
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to INPEX Insurance, Ltd. (IIL) (Bermuda). The outlook assigned to both ratings is stable.

The ratings reflect IIL’s robust risk-adjusted capitalization, conservative operating strategy and explicit parental support. As a Class 1 insurer domiciled in Bermuda, IIL is a single-parent captive of INPEX CORPORATION (INPEX) in Japan. INPEX is Japan’s largest oil and gas exploration and production company and is mid-tier globally in terms of production volume. As a captive insurer for its parent company, IIL provides insurance for INPEX and its affiliates. IIL also contributes to risk management at INPEX by acquiring loss information and sharing it with each business unit to prevent losses. IIL’s five-year average underwriting results remain favorable, although highly volatile due to claims characterized as low frequency and high severity.

Partially offsetting these positive rating factors is IIL’s significant reinsurance credit risk stemming from the large size of gross risks relative to its low retention level. However, this is mitigated to some extent by IIL’s reinsurance panel, which has a strong credit profile.

A.M. Best considers the company to be well positioned for its current rating level. Negative rating actions could occur if there is a significant loss of surplus, continuous deterioration and/or significant change in IIL's risk profile. In addition, deterioration in INPEX’s credit profile could impact IIL's ratings.

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.

The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

A.M. Best Asia-Pacific Limited is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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Hossam Abdel-Kader
+43 1 9582319
e-mail
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