AM Best affirms A rating on Aramco's Bermuda captive Stellar

AM Best affirmed its A (Excellent) financial strength and "a+" long-term issuer credit ratings for Stellar Insurance, the Bermuda captive of Saudi Arabian Oil Company, with a stable outlook. The ratings action, published October 22, 2026, reflects balance sheet strength the agency assesses as very strong, strong operating performance, a neutral business profile and appropriate enterprise risk management. AM Best also cites rating enhancement from Stellar's strategic importance to its parent.

Roughly three-quarters of Stellar's assets are a promissory note from its parent, which AM Best describes as a simplified investment strategy typical among captives. The note's terms allow quick access to funds, and the rest of the book sits in high-quality fixed interest securities. Risk-adjusted capitalisation is at the strongest level on Best's Capital Adequacy Ratio. AM Best expects it to stay there, supported by low net underwriting leverage, internal capital generation and a comprehensive reinsurance programme.

AM Best calculates a four-year weighted average IFRS 17 net/net combined ratio of 2.6% for 2022-2025, a result that includes reserve releases and, in the agency's words, reflects a conservative reserving approach. Stellar generated strong profits in 2025 and the first half of 2026 on underwriting and investment income. It has experienced minimal impact from the current conflict in the Middle East to date. The agency expects performance to remain strong but flags potential long-term volatility from high-severity, low-frequency losses in the parent's energy programme. Gross underwriting limits rely on reinsurance, with counterparty risk spread across a diversified panel of reinsurers.