Best’s News & Research Service - July 21, 2016 09:42 AM (EDT)
A.M. Best Downgrades Ratings of Solen Versicherungen AG and Noble Assurance Company
- July 21, 2016 09:42 AM (EDT)
London //BestWire// - A.M. Best has downgraded the financial strength rating to A (Excellent) from A+ (Superior) and the issuer credit ratings to “a+” from “aa-” of Solen Versicherungen AG (SVAG) (Switzerland) and Noble Assurance Company (Noble) (Texas, USA). The outlook for each rating has been revised to stable from negative.
The rating downgrades reflect weakening in the credit profile of Royal Dutch Shell plc (RDS), due in particular to continuing low oil prices. RDS is the ultimate parent company of single-parent captives, SVAG and Noble.
SVAG’s ratings reflect its affiliation with RDS to which it remains important as a risk management tool. A change in RDS’ credit profile can therefore lead to upward or downward movement of SVAG’s ratings. In addition, SVAG’s ratings reflect its excellent earnings track record and strong risk-adjusted capitalisation.
The ratings of SVAG are extended to Noble. Noble is the U.S.-based captive of RDS and cedes 100% of its risks to SVAG through a quota share agreement.
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.
This press release relates to rating(s) 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.
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