Financial Stability of Phillips 66 and Risk Management


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Financial Stability of Phillips 66 and Risk Management
June 6, 2013: A.M. Best Affirms Excellent Rating for Phillips' Captive Insurer
The Fort Mills Times reported on June 6, 2013 that A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Spirit Insurance Company of Burlington, VT, the captive insurer for its ultimate parent, Phillips 66. "Business written by Spirit has a history of strong underwriting results and operating returns. The company’s loss experience has remained favorable due in part to its strong loss control program at the parent. Phillips 66 will conduct periodic reviews of Spirit’s potential loss exposures through a specialist in industrial risks," reads the report.[2]
However the report also observes that a single occurrence could result in a large loss that approaches Spirit’s limits, that partially offsetting A.M. Best's positive rating factors are Spirit’s exposure to large losses due to the limits offered on its policies as well as its significant dependence on reinsurance protection and that although the majority of Spirit’s capital is loaned to its parent, there is limited counterparty risk due to the affiliation of the two companies.[3]
December 3, 2012: Standard and Poor Assigns BBB/Stable/A-2 Corporate Credit Rating, Judges Financial Risk Profile as 'Intermediate'
Standard and Poor reported on December 3, 2012 that they had assigned a BBB/Stable/A-2 corporate credit rating to Phillips 66 Co. based on a consolidated approach to the Phillips 66 entities. "The rating on Phillips 66 Co. reflects Standard & Poor's assessment of the company's business risk profile as 'satisfactory' and financial risk profile as 'intermediate' (as our criteria define these terms)," says the report prepared by Primary Credit Analyst Mark Habib. "We view the refining sector as having significantly higher-than-average industry risk, given its exceptional degree of volatility and fixed- and working-capital intensity. Notwithstanding the relatively favorable market conditions at times over the past year, we view long-range industry fundamentals as difficult given persisting excess production capacity globally and a secular decline in demand for some key transportation fuel products in developed markets."[4]
Master Index for Phillips 66 Articles
- Phillips 66 Master Article
- Phillips 66 Master Index
- Creation of Phillips 66
- Decision to Name the Downstream Company Phillips 66
- Strategic Vision for Phillips 66
- Phillips 66 Capital Programs
- Governance at Phillips 66
- Greg Garland, CEO of Phillips 66
- Members of the Board of Directors of Phillips 66
- Financial Stability of Phillips 66 and Risk Management
- Government Relations at Phillips 66
- Media Relations and Public Relations at Phillips 66
- New Phillips 66 Headquarters
- Litigation and Legal Issues at Phillips 66
- The Stock Market and Phillips 66
- Dividends and Stock Repurchase at Phillips 66
- Stockholder's Meetings at Phillips 66
- Earnings Conferences at Phillips 66
- Investor Conferences at Phillips 66
- Operational Excellence at Phillips 66
- Safety at Phillips 66
- Employee Deaths and Injuries at Phillips 66
- Environmental Issues at Phillips 66
- Refinery and Marketing Business Segment at Phillips 66
- Labor Relations at Phillips 66
- Human Resources at Phillips 66
- Increasing Profitability in the Refining Business Segment at Phillips 66
- Divestiture of Non-Core Assets at Phillips 66
- Marketing and Special Products at Phillips 66
- Technology Development at Phillips 66
- How Much Money Does the Marland Refinery in Ponca City Earn for Phillips 66?
- Ponca City and the "Merger of Equals" with Phillips 66 in 2001
- Ponca City and the Spinoff of Phillips 66 in 2012
- Phillips 66: Ponca City Refinery
- Phillips 66: The Marland Refinery at Ponca City
- Phillips 66: Alliance Refinery
- Phillips 66: Bayway Refinery
- Phillips 66: Billings Refinery
- Phillips 66: Borger Refinery
- Phillips 66: Ferndale Refinery
- Phillips 66: Humber Refinery
- Phillips 66: Lake Charles Refinery
- Phillips 66: Los Angeles Refinery
- Phillips 66: Wilmington Refinery
- Phillips 66: Melaka Refinery
- Phillips 66: San Francisco Refinery
- Phillips 66: Rodeo Refinery
- Phillips 66: Santa Maria Refinery
- Phillips 66: Sweeny Refinery
- Phillips 66: Trainer Refinery
- Phillips 66: Whitegate Refinery
- Phillips 66: Wood River Refinery
- Chemical Business Segment at Phillips 66
- Midstream Business Segment at Phillips 66
- What Independent Financial Analysts Say About Phillips 66
- External Links to Phillips 66
References
- ↑ Bartlesville Examiner-Enterprise. "Phillips 66 CEO praises city" by Kelcey King. August 28, 2008.
- ↑ Fort Mills Times. "A.M. Best Affirms Ratings of Spirit Insurance Company" June 6, 2013.
- ↑ Fort Mills Times. "A.M. Best Affirms Ratings of Spirit Insurance Company" June 6, 2013.
- ↑ Reuters. "S&P rates Phillips 66 Co. 'BBB' with stable outlook" by Standard and Poor. December 3, 2012.
About the Author
Hugh Pickens (Po-Hi '67) is a physicist who has explored for oil in the Amazon jungle, crossed the empty quarter of Saudi Arabia, and built satellite control stations for Goddard Space Flight Center all over the world. Retired in 1999, Pickens and his wife moved from Baltimore back to his hometown of Ponca City, Oklahoma in 2005 where he cultivates his square foot garden, mows nine acres of lawn, writes about local history and photographs events at the Poncan Theatre and Ponca Playhouse.
Since 2001 Pickens has edited and published “Peace Corps Online,” serving over one million monthly pageviews. His other writing includes contributing over 1,500 stories to “Slashdot: News for Nerds,” and articles for Wikipedia, “Ponca City, We Love You”, and Peace Corps Worldwide.
Articles about Ponca City
- The Pioneer Woman Models Should Return to Ponca City July 13, 2007
- The Pioneer Woman Models Come Home to Ponca City February 26, 2010
- President Barack Obama's Mother Grew Up in Ponca City February 6, 2009
- Standing Bear Looks to the Future
- What to See in Ponca City
- Ponca Playhouse to Present "The Broken Statue" January 17, 2012
- What Ponca City Owes EW Marland June 20, 2012
- How Much Money Does the Marland Refinery in Ponca City Earn for Phillips 66? July 23, 2012
- EW Marland and the Movie "The Ends of the Earth" May 23, 2013
Other Writing
- An Independent Evaluation of Phillips 66, its Business Strategy, and Execution
- Jon Carson is Head of Obama's "Organizing for Action"
- Academy Award Winner Chris Terrio Writes Screenplay about E.W. Marland
- Building NASA's NASA's GRO Remote Terminal System (GRTS) in Australia
- America's Fresh Water Submarines in World War II
- Peace Corps Director Aaron Williams
- The Peace Corps "Sharp Incident" in Kazakhstan
- Why I enjoy Writing for Slashdot
- Why I enjoy Writing for Wikipedia
- Death Be Not Proud
- My Favorite Christmas
- A Victorian Mansion in Baltimore's Reservoir Hill
- Senate Foreign Relations Committee Hearing on the Nominee for Peace Corps Director
Updates to the Web Site
This web page is frequently updated so check back periodically to see the latest information or subscribe to the rss feed for this article. If you have any information or insights that you would like to see added to this report please contact Hugh Pickens by email at hughpickens AT gmail DOT com.
Copyright
The material in this article is licensed under under the Creative Commons under an Attribution-Noncommercial-Share Alike 2.0 Generic license. Except for short, fair use excerpts, the material on this article cannot be used for commercial purposes without permission of Hugh Pickens. Attribution for use of any material from this article must be provided to Hugh Pickens and if used on the web a link must be provided to http://hughpickens.com.