A.M. Best Affirms Ratings Of Bison Insurance Company Limited
A.M. Best Co. has affirmed the financial strength rating of A and issuer credit rating of “a of Bison Insurance Company Limited. The outlook for both ratings is stable.
The ratings reflect Bison’s historically adequate capitalization, generally favorable operating performance, conservative reserve levels and effective management of its catastrophe exposures. The ratings also recognize Bison’s history of maintaining sufficient capital and financial resources to support its ongoing obligations.
Partially offsetting these positive rating factors are the company’s volatile underwriting results due to the historically low loss frequency, high loss severity nature of its risk profile, coupled with its high limits and high net retentions relative to surplus. Additionally, the continually changing risk profile of Bison’s primary insured causes large profile changes that effect the captive.
Bison is the single parent captive of Duke Energy and its subsidiaries. The risk management team of Duke Energy takes a holistic approach to managing the risks of the company, and utilizing Bison as an integral tool in this process. Bison continues to acquire additional lines of business from Duke Energy, thereby providing additional diversification of risks insured. Bison’s long-term growth opportunities primarily depend on the business success of Duke Energy. Long term, Bison will pursue additional lines of business, both from the parent and its subsidiaries.
A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.
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