OID hails OneNexus for AM Best rating

The Oklahoma Insurance Department (OID) has applauded OneNexus Oklahoma Captive Corp. for receiving a Financial Strength Rating of A – (Excellent) and a Long-Term Issuer Credit Rating of “a-”(Excellent) from global credit rating agency AM Best. OneNexus is an Oklahoma-domiciled protected cell captive insurer.

“I want to congratulate OneNexus on this incredible achievement,” said Oklahoma Insurance Commissioner Glen Mulready. “This is also another achievement for our captive program that further enhances our reputation.”

“We are honoured to receive an A- (Excellent) Financial Strength Rating from AM Best. This recognition reflects our commitment to building a secure and permanent solution for long-duration energy liabilities,” said Tony Sanchez, founder and chief executive of OneNexus. “We are especially proud to be domiciled in Oklahoma, where the regulatory environment fosters innovation while maintaining rigorous standards. We thank the Oklahoma Insurance Department for its continued leadership and support.”

OneNexus issues environmentally friendly insurance policies. They pay to responsibly decommission depleted oil wells so that they do not become abandoned oil wells. This responsible decommissioning helps prevent future abandoned oil wells, which are a problem in Oklahoma and worldwide.

“No other captive domicile in the world has a captive that does what OneNexus does,” said OID Captive Insurance Director Steve Kinion. “OneNexus is a protected cell arrangement and one of the few cell captive structures rated A- by AM Best. Its rating represents that it is a regulatory-compliant and well-regulated captive insurer.”

The ratings reflect OneNexus’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

OneNexus reflects the OID’s long-term commitment to captive insurance into the next century. An oil or gas well drilled today and insured by a OneNexus policy may produce energy for a century. The decommissioning to be paid by the policy may not occur until 2125.

In 2024, Oklahoma had a net gain of five captive insurers, ending the year with 64 captives. This represents an 8.4% annual growth rate over the 59 captive insurers at year-end 2023.  Its captive insurers wrote more than $400 million in premium in 2024. OID was named the 2024 Captive Domicile of the Year in the category of less than $5 billion in gross written premium by Captive Review magazine.

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