OLDWICK, NJ, August 22, 2024–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of Queen City Assurance, Inc. and Vine Court Assurance Incorporated (both based in Burlington, VT). The outlook on these credit ratings (ratings) is stable.
The ratings reflect the Group’s balance sheet strength, which AM Best considers to be the strongest, as well as its strong operating performance, neutral business profile and adequate enterprise risk management (ERM).
Risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is rated at the highest level. The company consistently maintains strong liquidity measures while adhering to its conservative investment philosophy. The ratings also take into account the financial flexibility afforded to the group by its publicly traded parent, The Kroger Co. (Kroger), one of the largest companies in the food retail industry. Strong operating performance reflects favorable combined and operating metrics as well as excellent return metrics on both sales and equity. AM Best recognizes the group of companies as an integral part of the parent’s overall ERM framework, with the significant financial resources and support available to them as the sole parent company providing Kroger with tailored insurance coverage for property and casualty risks.
The stable outlook reflects AM Best’s expectations that the operating performance of the captives will remain stable and strong, while the earnings profile will continue to support the group’s growth and operations, consistent with its capital and surplus position. AM Best also expects that the parent company’s ability and willingness to support the captives will not change.
AM Best remains the leading rating agency for alternative risk transfer companies, rating more than 200 such companies in the United States and worldwide. Current Best credit ratings and independent data on the captive and alternative risk transfer insurance market can be found at www.ambest.com/captive.
This press release refers to credit ratings published on AM Best’s website. All rating information related to this publication and related disclosures, including the identification of the bureau responsible for assigning each credit rating mentioned in this press release, can be found on AM Best’s website. Current review activity Website. For more information on the use and limitations of credit rating opinions, see Guide to Best Credit Ratings. For information regarding the proper use of AM Best’s credit ratings, performance ratings, preliminary credit ratings and press releases, please visit Guide to the correct use of Best’s ratings and reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in over 100 countries and has offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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