Bermudian-based Oil Insurance Ltd, a mutual insurer for the energy industry, has had its financial strength rating raised to A from A- by Standard and Poor's Global Ratings.

S&P also raised Oil's issue-level rating to BBB+ from BBB. The outlook is stable.

Bertil Olsson, Oil's chief executive officer, said that “over the past several years the board, management and staff have done an exceptional job managing the financial affairs of the company and S&P have recognised these efforts as well as Oil's unique value proposition and financial strength and we are pleased to see this reflected in our improved rating”.

George Hutchings, Oil's chief operating officer, said that “the higher rating should create an immediate benefit to our members by way of reduced capital costs particularly in their captives, improved security and a general recognition that their company is in excellent financial health.

“The upgrade is the culmination of a great deal of hard work by everyone at Oil to have the company recognised for its dramatically improved financial strength over the past 13 years.”

Oil insures the risk of its more than 50 energy industry members.