AM Best on 22 October affirmed the A (Excellent) financial strength rating and the "a+" (Excellent) long-term issuer credit rating of Stellar Insurance, Ltd. The outlook for both is stable. Stellar is a Bermuda-domiciled single-parent captive, indirectly wholly owned by Saudi Arabian Oil Company (Saudi Aramco), and it transfers risk for the operations of the parent, its affiliates and its joint ventures.
The rating agency said the captive has had minimal impact from the current Middle East conflict to date. It still sees the energy programme as exposed to high-severity, low-frequency losses, which leaves results "subject to potential volatility in the long term".
AM Best calculated Stellar's four-year (2022-2025) weighted average combined ratio at 2.6% on an IFRS 17 net/net basis, a figure that includes reserve releases. It assesses the balance sheet as very strong and expects risk-adjusted capitalisation to stay at the strongest level. It also cites a neutral business profile, appropriate enterprise risk management and the captive's strategic importance to its parent.
About three-quarters of Stellar's assets are a promissory note from the parent; the rest is in high-quality fixed-interest securities. The captive buys reinsurance to support its high gross limits, and AM Best said a diversified panel of financially strong reinsurers reduces the counterparty risk.
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AM Best ↗Company · 22 Oct 2026
This is an original brief based on the linked publication. Company statements and forecasts are attributed to their source.
