Standard & Poor’s Ratings Services announced that it has affirmed its “AA+” long-term counterparty credit and insurer financial strength ratings on Guernsey-based Jupiter Insurance Ltd., the wholly owned captive insurer of U.K.-based petroleum giant BP PLC (rated- AA+/Stable/A-1+). S&P’s outlook on Jupiter is also stable.
“The ratings on Jupiter are based on its status as the captive insurer of BP,” stated S&P credit analyst Matthew Day. He indicated that under S&P’s ratings criteria Jupiter qualifies as a captive insurer, “and, as such, is rated at a level commensurate with the ratings on its ultimate parent.”
S&P also noted: “As the sole active captive insurer of the BP group, Jupiter forms an integral part of the group’s overall risk management strategy. This strategy has been underlined by the BP group’s ability to absorb the losses caused by the hurricanes in the Gulf of Mexico through 2004 and 2005. The stable outlook on Jupiter reflects that on its ultimate parent, BP.”
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