Risk culture earns pure captives solid ratings

AM Best has assigned Queen City Assurance and Vine Court Assurance, both Vermont-domiciled pure captives of The Kroger Co, financial strength and issuer credit ratings of A and “a” respectively.

The ratings are based on both companies’ excellent risk-adjusted capitalisation, substantial net income and underwriting profitability, a growing capital base, conservative investments and a strong adherence to the parent’s robust risk controls and overall risk culture.

These strengths are partially offset by the companies’ risk concentration, a result of their status as single-parent captives, and a substantial aggregate limit retained by the captives.