AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of Queen City Assurance, Inc. and Vine Court Assurance Incorporated (both domiciled in Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level. The company consistently maintains strong liquidity measures while adhering to its conservative investment philosophy. The ratings also consider the financial flexibility afforded to the group from its publicly traded parent, The Kroger Co. (Kroger), one of the largest companies in the food retail industry. The strong operating performance reflects favorable combined and operating ratios, as well as excellent return metrics on both revenue and equity. AM Best recognizes the group of companies as an integral part in the parent’s overall ERM framework, with the substantial financial resources and support available to them as single-parent captives providing tailored insurance coverage for property/casualty risks to Kroger.

The stable outlooks reflect AM Best’s expectations that the captives’ operating performance will remain stable and strong, while the earnings profile continues to support the group’s growth and business writing consistent with its capital and surplus position. AM Best also expects the parent’s ability and willingness to support the captives will not change.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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