S&P Affirms Jupiter Insurance ‘AA+’ Rating

January 21, 2004

Standard & Poor’s Ratings Services announced that it has affirmed its ‘AA+’ long-term counterparty credit and insurer financial strength ratings on Jupiter Insurance Ltd., the Guernsey-based captive insurer of U.K.-based oil major BP PLC, with a stable outlook.

“The ratings on Jupiter are significantly influenced by the ratings on its ultimate parent, BP,” stated S&P credit analyst Nigel Bond. Stand-alone rating factors include Jupiter’s extremely strong capitalization and very strong investments. These positive factors are partly offset by Jupiter’s strong (if volatile) operating performance and limited business position.

“The stable outlook on Jupiter reflects Standard & Poor’s expectation that the ratings on BP will remain a significant influence on the ratings on Jupiter,” said the bulletin. “BP is normally expected to keep Jupiter capitalized at a minimum of 4x the maximum sum insured. Jupiter is expected to remain profitable at the underwriting level, barring any catastrophic losses. Furthermore, Jupiter is not expected to underwrite any third-party business, and should remain core to the BP group risk management strategy.”

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