Fitch Assigns BHP Marine & General First-Time ‘A’ Ratings; Outlook Stable

Fitch Ratings has assigned BHP Marine & General Insurances Pty Ltd (BHP M&G) a first-time Insurer Financial Strength (IFS) Rating and Long-Term Issuer Default Rating (IDR) of ‘A’. The Outlook is Stable.

The ratings reflect BHP M&G’s core captive status and strong integration within Australia-based BHP Group Limited (Long-Term IDR: A/Stable).

Key Rating Drivers

Core Captive Status: We consider BHP M&G to be a core captive of BHP. We equalise the insurer’s IFS Rating with BHP’s Long-Term IDR, due to the high integration between the captive and the group, the reliance of its business model on the group and its strategic importance in providing insurance and reinsurance protection to the group and group subsidiaries. BHP M&G is domiciled in Australia and is wholly owned by BHP.

Aligned With Parent’s Strategy: BHP M&G’s objective is to create and protect value by cost effectively supporting BHP’s self-insurance strategy. Its mission and strategy are closely aligned with the group’s risk management and risk financing approach. The captive is not run as a profit centre. Operational integration is further demonstrated by the group’s representation on BHP M&G’s board and risk management function.

Business Fully Derived from Parent: BHP M&G writes a range of group-only risks, including reinsurance cover for BHP’s Guernsey-based captive, Stein Insurance Company Limited (IFS: A/Stable), and workers’ compensation. BHP M&G does not underwrite third-party business. All premiums are sourced from BHP group entities.

Solid Capitalisation: BHP M&G’s Fitch Prism Global score was ‘Extremely Strong’ in the financial year ended June 2025 (FYE25), similar to FY24. Coverage of the regulatory prescribed capital amount was high, at 1.87x at FYE25 (FYE24: 1.76x). BHP M&G holds no direct investments. Instead, it lends all funds to BHP’s subsidiary, BHP Billiton Finance Ltd (senior unsecured rating: A) on an at-call basis.

Limited Use of Reinsurance: BHP M&G’s reliance on reinsurance is limited, consistent with the group’s strategy to primarily self-insure. The insurer did not renew its external reinsurance cover in FY25. Its reinsurance recoverables relate to legacy asbestos and liability classes, which are now in run-off.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade – A downgrade of BHP’s IDR

– A downward revision of Fitch’s assessment of BHP M&G’s core captive status

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

– An upgrade of BHP’s IDR

Date of Relevant Committee 26-Sep-2025

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. Public Ratings with Credit Linkage to other ratings The ratings are driven by BHP’s IDR. ESG Considerations Fitch does not provide ESG relevance scores for BHP M&G.

Source: Fitch Ratings