Cayman Islands clean energy captive receives ‘Excellent’ rating
Ratings agency AM Best has affirmed the financial strength rating of A (Excellent) of Palms Insurance Company, the Cayman Islands-based single parent captive of NextEra Energy Capital Holdings (NEECH).
NEECH is owned by NextEra Energy, a renewable energies company based in Florida, US.
The ratings reflect Palms’ balance sheet strength, which AM Best categorises as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
They also reflect Palms’ solid risk-adjusted capitalisation, history of consistently positive operating performance and conservative balance sheet strategies, as well as its significant role within the risk management structure of its parent, NEECH.
These positive rating factors are partially offset by Palms’ limited market scope and high net loss potential stemming from a single, severe occurrence relative to surplus. However, AM Best said this is somewhat mitigated by the company’s excellent loss history, favourable geographic spread of risk and Palms’ history of strong surplus position.
Palms accepts insurance risks only from NextEra Energy and its affiliates, providing specialised direct and assumed property and casualty coverages, workers’ compensation, automobile liability, employers’ liability and property risk.