LONDON–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Solen Versicherungen AG (SVAG) (Switzerland) and Noble Assurance Company (Noble) (Texas, U.S.A.). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect SVAG’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in rating enhancement from SVAG’s ultimate parent, Royal Dutch Shell plc (Shell), reflecting SVAG’s importance to the group as a well-entrenched risk management tool. Shell provides support to SVAG in the form of a contingent capital facility that would allow SVAG to replenish its capital position quickly if needed.
SVAG’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the strongest level at year-end 2020, as measured by Best’s Capital Adequacy Ratio (BCAR). Risk-adjusted capitalisation could be materially impacted by one or more significant losses due to the large gross and net line sizes the captive offers. However, AM Best would expect SVAG to replenish capital buffers promptly following such losses, either through internal capital generation or by drawing on its contingent capital facility. The balance sheet strength assessment also takes into consideration the…
