Ratings agency AM Best has affirmed the financial strength rating of A (Excellent) of Palms Insurance Company, the Cayman Islands-based captive of NextEra Energy Capital Holdings (NEECH).
The rating action ratings reflects Palms’ solid risk-adjusted capitalisation, consistently strong operating performance and conservative balance sheet strategies, as well as the captive’s strong integration within the risk management structure of NEECH.
Palms is a single parent or pure captive insurer, and accepts insurance risks from NextEra Energy (NEE), providing specialised direct and assumed property and casualty coverages, workers’ compensation, automobile liability, employers’ liability and property risk.
AM Best also recognises Palms’ history of maintaining sufficient capital and financial resources to support its ongoing obligations.
Palms’ limited market scope and high net loss potential from a single severe occurrence relative to surplus partially offset these positive rating factors. This is partially mitigated by the company’s “excellent loss history”, as well as favourable geographic spread of risk, as well as its support of Palms’ strong surplus position by its parent.
AM Best, Palms, NextEra Energy, Captive, Ratings, Cayman Islands