FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 15, 2022 11:15 AM (EST)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of OCIL Specialty Ltd (OSL) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect OSL’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
OSL is a recently formed (re)insurer providing the capacity to support excess liability placements within the U.S. energy insurance space. OSL began accepting business in April 2021 and as of Nov. 30, 2022, completed its first full year of underwriting. The ratings reflect OSL’s strategic importance to its parent company, Everen Specialty Ltd. (Everen Specialty), along with its common ownership and management, and the implicit and explicit support provided to OSL by Everen Specialty.
The very strong balance sheet assessment is based on OSL’s supportive risk-adjusted capital that meets AM Best’s guidelines for newly formed organizations; AM Best expects that OSL will maintain supportive risk-adjusted capital levels through its five-year startup phase.
AM Best assesses OSL’s operating performance as adequate based on its clearly defined business plan that contemplates a level of implementation and execution risk for a newly formed entity. AM Best views OSL’s business profile as limited, given the execution risk associated with a startup entity and its unproven business profile. This risk is mitigated somewhat by the management team’s experience in the targeted business class, along with the parent company’s brand and track record of success. OSL has a clearly defined ERM structure guided by the parent company that benefits from management’s experience in its market niche.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.