Market Overview

A.M. Best Affirms Credit Ratings of Jupiter Insurance Limited

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A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of "a" of Jupiter
Insurance Limited
(Jupiter) (Guernsey), a captive of BP p.l.c.
(BP). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect Jupiter's balance sheet strength, which A.M. Best
categorises as very strong, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management
(ERM).

Jupiter's balance sheet strength is supported by its risk-adjusted
capitalisation being at the strongest level, as measured by Best's
Capital Adequacy Ratio (BCAR). Offsetting rating factors include the
captive's high underwriting limits provided to a number of different
locations and facilities, as well as its concentrated investment
portfolio, which predominantly consists of financial instruments linked
to its ultimate parent, BP.

A.M. Best expects Jupiter's risk-adjusted capitalisation to remain at
the strongest level, supported by strong internal capital generation and
a capital base of approximately USD 6.5 billion as at year-end 2017 that
continues to support the captive's high maximum line size of USD 1.5
billion. The captive does not purchase any outward reinsurance cover.
Jupiter's investments are highly concentrated, with 99% invested in
discount notes issued by BP International Limited (durations between one
and 12 months). Consequently, A.M. Best considers Jupiter's financial
strength to be linked closely to that of BP.

The captive has reported strong operating results over the past five
years, mainly driven by strong underwriting profits in the absence of
large losses. However, softening market conditions, lower insured values
due to BP's divestments and lower oil prices have put significant
downward pressure on Jupiter's premium income. As its underwriting
limits have remained unchanged, this is likely to increase the
volatility in Jupiter's prospective operating results.

Jupiter's business profile assessment reflects its key role in BP's
overall risk management framework, as its principal captive. Jupiter's
underwritten risks consist largely of offshore and onshore property, and
business interruption cover. The captive allows BP to optimise its
insurance protection in terms of scope and cost. In addition, Jupiter
provides reinsurance to its sister captive, Saturn Insurance Inc.

A.M. Best remains the leading rating agency of alternative risk transfer
entities, with more than 200 such vehicles rated 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 rating(s) that have been published on
A.M. 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 A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is the world's oldest and most authoritative insurance
rating and information source. For more information, visit
www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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