PRESS RELEASE: A.M. Best Downgrades Jupiter Insurance Limited

21st Jun 2010 15:11

A.M. Best Downgrades Jupiter Insurance Limited LONDON--(BUSINESS WIRE)--June 21, 2010-- A.M. Best Co. has downgraded the financial strength rating (FSR) to A (Excellent) from A+ (Superior) and issuer credit rating (ICR) to "a" from "aa-" of Jupiter Insurance Limited (Jupiter) (Guernsey). Jupiter is a captive of BP plc (BP), an integrated oil and gas company. The outlook for both ratings remains negative. The downgrade and negative outlook reflect concerns over the potential impact on BP of the ongoing Deepwater Horizon oil spill in the Gulf of Mexico. Although BP has recently agreed to establish a USD 20 billion claims fund, given the magnitude of this event, it is currently impossible to assess the ultimate impact on BP, both in terms of financial liabilities and reputational damage. Significant uncertainties are likely to remain for some time to come, and A.M. Best will continue to monitor the situation. A.M. Best considers that the financial position of Jupiter itself is likely to remain strong following this incident. Although Jupiter has established loss reserves at its policy limit of USD 700 million, risk-adjusted capital still soundly supports the rating level. For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. CONTACT: A.M. Best Analysts: Tim Prince, +(44) 20 7626 6264 [email protected] Carlos Wong-Fupuy, +(44) 20 7626 6264 [email protected] or Public Relations: Rachelle Morrow, +(1) 908 439 2200, ext. 5378 [email protected] Jim Peavy, +(1) 908 439 2200, ext. 5644 [email protected] SOURCE: A.M. Best Co. Copyright Business Wire 2010 (END) Dow Jones Newswires June 21, 2010 10:11 ET (14:11 GMT)