A.M. Best revises Kroger captive rating outlook

October 9, 2026 - 00:30

A.M. Best has updated its assessment of two captive insurance entities tied to the grocery chain Kroger. The rating agency announced on Thursday that it revised the outlook on the long-term issuer credit ratings for Queen City Assurance and Vine Court Assurance. Both companies operate as Vermont-domiciled captives and serve as key risk management tools for the food retailer.

The revision reflects a shift in the agency's view of the captives' financial strength and their role within the broader Kroger organization. While the credit ratings themselves remain unchanged, the outlook adjustment signals a change in the potential direction of those ratings over the medium term. A.M. Best based its decision on factors including capitalization, reserve adequacy, and the parent company's overall credit profile.

Captive insurers like Queen City and Vine Court allow large corporations to self-insure certain risks rather than purchasing coverage from traditional commercial carriers. Vermont is a leading domicile for such entities due to its regulatory framework. Kroger, one of the largest supermarket operators in the United States, uses these captives to manage exposures ranging from workers' compensation to general liability. The outlook revision does not indicate an immediate downgrade or upgrade, but it does suggest that A.M. Best sees changing conditions that could affect the captives' ratings going forward.