19 June 2017Analysis

Vermont and South Carolina captives withdraw from AM Best ratings

AM Best has withdrawn the ratings of captive insurers Cedar Court Indemnity Company and Bison Insurance Company following separate requests to no longer participate in the interactive rating process.

The Vermont-based Cedar Court is the captive insurer of technology and manufacturing organisation Honeywell International, and had recently had its Financial Strength of A- (Excellent) affirmed by AM Best.

AM Best said the ratings reflected Cedar Court's strong risk-adjusted capitalisation, conservative operating strategy and the critical role it plays as a parent captive insurer to Honeywell.

The South Carolina-based Bison is the captive insurer of Duke Energy Corporation, insuring select risks and providing a variety of coverage in property/casualty lines of business.

AM Best had recently affirmed Bison's financial strength rating of A (Excellent), reflecting the captive's historically excellent risk-adjusted capitalisation, consistent operating profitability driven by favorable underwriting results, conservative reserve levels and effective enterprise risk management controls