AUGUST 04, 2017 09:48 AM (EDT)
A.M. Best Assigns Issue Credit Rating to Oil Casualty Insurance Ltd.’s Deferrable Subordinated Debentures
|Guilherme (Guy) Monteiro Simoes|
Senior Financial Analyst
+1 908 439 2200, ext. 5301
Senior Financial Analyst
+1 908 439 2200, ext. 5829
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 04, 2017 09:48 AM (EDT)
A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb” to the $200 million 8.00% deferrable subordinated debentures due Sept. 15, 2034, issued in 2004 and amended in 2015, by Oil Casualty Insurance Ltd. (OCIL) (Bermuda). The outlook assigned to the Credit Rating (rating) is stable.
During the year ended Nov. 30, 2016, the company repurchased and retired a portion of the debentures with a par value of $5 million. During prior years, the company had repurchased and retired a portion of the debentures with a par value of $51.6 million. At Nov. 30, 2016, the outstanding total was $143.4 million, which is included in loans payable in the consolidated balance sheet.
A.M. Best notes that while financial leverage is well within A.M. Best’s guidelines, coverage is somewhat lower than guidelines indicate. A mitigating factor is the liquid asset profile of OCIL, coupled with a relatively long claim payout pattern.
OCIL writes predominately excess general liability insurance throughout the United States and the world. From its inception, OCIL has operated with an energy industry owned insurance company philosophy with benefits of share ownership accruing continually for the shareholder members.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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