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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 04, 2015 01:37 PM (EST)
A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a+" of Heddington Insurance Limited (Heddington) (Bermuda). The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings in response to Heddington's request to no longer participate in A.M. Best's interactive rating process.
The ratings reflect Heddington's superior capitalization, consistently positive operating results and the role it plays as a captive insurance company of Chevron Corporation (Chevron) [NYSE:CVX].
These positive rating factors are partially offset by Heddington's high net loss exposures, as the coverages provided tend to result in claims that are characterized as low frequency but high severity. This is somewhat mitigated by the captive's good loss history supported by steady investment income.
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:
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.