AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Bermudian-based Ocil Specialty Ltd.

The outlook of these credit ratings is stable.

The ratings reflect OSL’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

OSL is a recently formed re/insurer providing the capacity to support excess liability placements within the US energy insurance space.

OSL began accepting business in April 2021 and as of November 30, 2022, completed its first full year of underwriting.

AM Best said the ratings reflect OSL’s strategic importance to its parent company, Everen Specialty Ltd, along with its common ownership and management, and the implicit and explicit support provided to OSL by Everen Specialty.

The very strong balance sheet assessment is based on OSL’s supportive risk-adjusted capital that meets AM Best’s guidelines for newly formed organisations; AM Best expects that OSL will maintain supportive risk-adjusted capital levels through its five-year start-up phase.

AM Best assesses OSL’s operating performance as adequate based on its clearly defined business plan that contemplates a level of implementation and execution risk for a newly formed entity.

AM Best views OSL’s business profile as limited, given the execution risk associated with a start-up entity and its unproven business profile. This risk is mitigated somewhat by the management team’s experience in the targeted business class, along with the parent company’s brand and track record of success.

OSL has a clearly defined ERM structure guided by the parent company that benefits from management’s experience in its market niche.