AM Best Assigns Credit Ratings to Jamestown Insurance Company Limited



OLDWICK, New Jersey– (BUSINESS WIRE) –
AM Best assigned a financial strength rating of A- (excellent) and a long-term issuer credit rating of “a-” (excellent) to Jamestown Insurance Company Limited (Jamestown or the company). The outlook assigned to these credit ratings (ratings) is stable.

The ratings reflect the strength of Jamestown’s balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, limited business profile and appropriate enterprise risk management (ERM).

The strength of Jamestown’s balance sheet is underpinned by its risk-adjusted capitalization which is at the highest level, as measured by Best’s capital adequacy ratio (BCAR). The company’s balance sheet also benefits from a strong history of retained earnings and its effective use of third-party reinsurance to transfer risk. However, the company’s extensive reinsurance program exposes Jamestown to a high degree of credit risk, which is partially mitigated by its portfolio of financially strong and well-rated reinsurers. Jamestown also benefits from the explicit support of its parent company, Hess Oil and Gas Holdings, Inc., in the form of a large loan receivable from the parent company.

The operating performance of the company is largely the result of a constant stream of dividend income and interest income, which more than offsets any negative net underwriting deficit. Jamestown cedes a substantial portion of its business to reinsurers and as a result, underwriting results are modest compared to the investment gains of the company, allowing Jamestown to secure strong earnings each year.

As a single-parent captive company, the company’s mission is to provide (re) insurance coverage on certain property, well control, re-drilling, pollution and liability risks from its ultimate parent company, Hess Corporation. . The captive offers underwriting flexibility to the parent company by offering it access to the reinsurance market and stable pricing. Due to the global reach of the ultimate parent company, the risks of the captive are partly distributed geographically; however, the captive offers very limited lines of coverage, which contributes to the limited commercial profile of the company.

The company has an appropriate ERM program that is well integrated with that of the parent organization, resulting in excellent risk identification and mitigation processes.

AM Best remains the main rating agency for alternative risk transfer entities, with more than 200 of these vehicles rated in United States and all over the world. For Best’s current credit scores and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for the publication of each of the individual ratings referenced in this publication, please see AM Best Recent rating activity Web page. For more information on the use and limits of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit reports, and AM Best’s press releases, please see Guide to Proper Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based at United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico. For more information visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

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Robert gabriel, CPA

Financial Analyst

+1 908 439 2200, ext. 5725

[email protected]

Christophe sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Daniel J. Ryan
Senior director

+1 908 439 2200, ext. 5325

[email protected]

Jim peavy
Director, Communications

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best


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