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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - NOVEMBER 25, 2009 12:00 AM (EST)
A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) and issuer credit ratings of "aa+" of Ancon Insurance and Petroleum Casualty Group (Ancon) and its member companies, Ancon Insurance Company Inc. (Burlington, VT) and Petroleum Casualty Company (Houston, TX). The outlook for both ratings is stable.
The ratings reflect the group's superior capitalization, consistently strong operating results and exemplary risk management strategies. The ratings also consider the extensive experience and level of commitment of Ancon's parent, Exxon Mobil Corporation [NYSE: XOM], whose management incorporates the group as a core element in its overall risk management program. A.M. Best has taken a favorable view of Ancon's overall profile within the parent's structure and recognizes the benefits inured from this. Senior management of Exxon Mobil Corporation is intimately involved in Ancon's operations. Ancon is one of the largest captives in the United States and benefits from its history of more than 65 years operating as a captive insurer.
These positive rating factors are partially offset by the group's high net per occurrence loss potential stemming from large loss events. However, this is completely mitigated by the continued excellent loss history, favorable geographic spread of risk and the parent's history of supporting the group's strong surplus position.
A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.
For current Best's Credit Ratings and independent data on the captive and alternative insurance market, please visit Best's Captive Center.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.