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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.
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