A.M. Best Co. announced that it has affirmed the financial strength rating of “A “(Excellent) of Heddington Insurance (UK) Ltd. (HUK), a captive company of ChevronTexaco Corporation. The outlook remains stable.
Best said it “deems HUK to be a core subsidiary of its immediate parent, Heddington Insurance Limited (HIL). HUK benefits from substantial reinsurance support from its parent in the form of an 80 percent quota share of business written.”
The rating agency also indicated that the “company’s prospective capitalisation is likely to remain excellent based on its low level of exposure net of reinsurance ceded despite an increase in its expected maximum loss and anticipated deterioration in earnings in 2004.
“A net loss for the full year 2004 of approximately $3 million is anticipated due to poor loss experience for the year (anticipated loss ratio of approximately 170 percent). In 2005, A.M. Best forecasts lower claims activity (anticipated loss ratio of approximately 50 percent) and a return to positive results after net investment income.”
Was this article valuable?
Here are more articles you may enjoy.
State High Court Weighs in on Woman Taken for Organ Donation But Was Still Alive 
How Niche Insurance Shielded Bad Bunny From Bad Weather 
Three Sentenced in Bear-Suit Attacks Insurance Fraud Case 
Study Finds ‘Alarming’ High Flood Risk for 17M Americans on Atlantic, Gulf Coasts 
