27 November 2017Analysis

AM Best gives "Excellent" rating to JPMorgan captive

Ratings agency AM Best has affirmed the financial strength rating of A (Excellent) of Park Assurance Company, the single-parent captive of JPMorgan Chase Holdings, based in Vermont.

The outlook of these ratings is stable, and according to AM Best reflect the captive's excellent risk-adjusted capitalisation, operating performance, liquidity position, sophisticated risk management strategy and practices, conservative investment strategy, and its management team’s extended experience in the industry, as well as its role as a captive of JPMorgan Chase Holdings.

The ratings factors are partially offset by Park’s large gross underwriting risk appetite and the potential credit risk associated with its extensive use of reinsurance, which management utilizes to mitigate these one-off risks. As a single-parent captive, Park provides JPMorgan Chase with very high insurance limits and insures some properties with substantial insured values.

Park provides JPMorgan Chase with global property coverages, including terrorism, as well as bankers blanket bond and professional liability. These coverages are key components of JPMorgan Chase’s risk management strategy, and Park benefits from the group’s significant financial resources.