Kroger captive gets ratings affirmation from AM Best

AM Best has affirmed the financial strength rating of A and the long-term issuer credit ratings of “a+” of Queen City Assurance and Vine Court Assurance Incorporated (both domiciled in Burlington, Vermont). 

AM Best said that the outlook of these ratings is stable.

The ratings reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The level of risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, is assessed at the strongest level. The company consistently maintains strong liquidity measures while adhering to its conservative investment philosophy. The ratings also consider the financial flexibility afforded to the group from its publicly traded parent, The Kroger Co., one of the largest companies in the food retail industry. The strong operating performance reflects favourable combined and operating ratios, as well as excellent return metrics on both revenue and equity. 

AM Best added that it recognises the group of companies as an integral part in the parent’s overall ERM framework, with the substantial financial resources and support available to them as single-parent captives providing tailored insurance coverage for property/casualty risks to Kroger.

The stable outlooks reflect AM Best’s expectations that the captives’ operating performance will remain stable and strong, while the earnings profile continues to support the group’s growth and business writing consistent with its capital and surplus position. AM Best also expects the parent’s ability and willingness to support the captives will not change.

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