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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 22, 2020 10:52 AM (EST)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to OCIL Specialty Ltd (OSL) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect OSL’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
OSL is a newly formed (re)insurer providing the capacity and paper to support excess liability placements within the U.S. energy insurance space. The ratings reflect OSL’s strategic importance to its parent company, Oil Casualty Insurance, Ltd (OCIL), along with its common ownership and management, and the implicit and explicit support provided to OSL by OCIL.
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 a five-year start-up 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 start-up 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 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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.