A.M. Best Withdraws Ratings of Iron Horse Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a+” of Iron Horse Insurance Company (Iron Horse) (Burlington, VT). The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings in response to Iron Horse management’s request to no longer participate in A.M. Best’s interactive rating process.

The ratings reflect Iron Horse’s adequate risk-adjusted capitalization, explicit parental support, experienced management team and the role it plays as a direct captive subsidiary of Chevron Corporation (Chevron) [NYSE:CVX].

These positive rating factors are partially offset by Iron Horse’s high net loss exposures, as the coverages provided tend to result in claims that are characterized as low frequency but high severity. This is somewhat mitigated by the captive’s ability to secure capital from Chevron in the event of a covered shock loss. Iron Horse directly benefits from the attention of Chevron’s experienced risk management team. Iron Horse also gains from Chevron’s global operations, which provide favorable geographic spread of risk and line of business diversification.

In its role as a captive insurer, Iron Horse currently provides broad and competitive global insurance products for Chevron and its subsidiaries. The insurance needs of Chevron are supplied through the captive operations (where appropriate) and the commercial market.

Iron Horse and the other Chevron captives provide comprehensive coverage above Chevron’s internal retentions, while Iron Horse’s reinsurance is placed through a corporate wide plan with the world’s leading providers of capacity, resulting in a diversified and balanced distribution of reinsurers.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150723006447/en/

A.M. Best Company
Janet Hernandez, 908-439-2200, ext. 5767
Senior Financial Analyst
[email protected]
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Vice President
[email protected]
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company

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