AM Best


A.M. Best Affirms Ratings of Noble Assurance Company


CONTACTS:


Fred Eslami
Senior Financial Analyst
(908) 439-2200, ext. 5406
fred.eslami@ambest.com

Steven Chirico, CPA
Assistant Vice President
(908) 439-2200, ext. 5087
steven.chirico@ambest.com


Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 22, 2014 02:36 PM (EST)
A.M. Best has affirmed the financial strength rating of A+ (Superior) and the issuer credit rating of "aa-" of Noble Assurance Company (Noble) (Burlington, VT). The outlook for both ratings is stable.

The ratings and outlook reflect Noble's demonstrated strong capital adequacy, stable earnings and consistent surplus growth as evidenced by continued surplus levels through 2013 and projections beyond. The company benefits from intensive risk management processes as a captive insurance company for Royal Dutch Shell plc (Royal Dutch Shell) and its subsidiaries. Noble is actively managed by a strong captive manager and benefits from highly integrated management involvement within the Royal Dutch Shell risk management framework. One hundred percent of the risk taken by Noble is ceded to Solen Versicherungen AG (Solen), a subsidiary of Royal Dutch Shell.

Solen is well-capitalized and has demonstrated consistently growing metrics within the past few years. As such, A.M. Best has assessed the risk-adjusted capital strength on a combined Noble/Solen basis and found capital adequacy to be strong. Positive underwriting returns and a conservative investment strategy have contributed to strong risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio.

Noble could experience rating changes, both positive and negative, if there is a material change in its risk-adjusted capitalization, and/or that of Solen's or Royal Dutch Shell's.

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.

The methodology used in determining these 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.

Key insurance criteria reports utilized:


  • Alternative Risk Transfer (ART)

  • Analyzing Contingent Capital Facilities

  • Catastrophe Analysis in A.M. Best Ratings

  • Evaluating Non-Insurance Ultimate Parents

  • Risk Management and the Rating Process for Insurance Companies

  • The Treatment of Terrorism Risk in the Rating Evaluation

  • Understanding BCAR for Property/Casualty Insurers

  • Understanding Universal BCAR


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 visit A.M. Best's Ratings & Criteria Center .

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.


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AMB# Company Name
072672 Noble Assurance Company
031507 Shell plc
056958 Solen Versicherungen AG