Captive Insurance Ratings News | Nissan captive receives AM Best ‘excellent’ rating
Nissan captive receives AM Best ‘excellent’ rating
AM Best confirmed the A (Excellent) financial strength rating and long-term credit rating of the issuer “a” (Excellent) of Bermuda-based Nissan Global Reinsurance (NGRe).
The outlook for these credit ratings is stable.
The ratings reflect the very strong strength of NGRe’s balance sheet as well as its adequate operational performance, neutral business profile and appropriate management of business risks.
The neutral business profile considers NGRe’s strategic role as a captive insurer for its parent company, Nissan Motor (Nissan).
The rating claims also reflect NGRe’s continued profitable operations, which AM Best said has resulted in continued growth in surplus.
The strength of NGRe’s balance sheet and the risks associated with its investments in asset-backed securities (ABS) support the strength of its balance sheet.
AM Best explains that although ABS investments have declined over the past two years, they remain an important part of NGRe’s portfolio.
“The company’s ABS investments come from Nissan’s affiliated finance companies, which generate significant monthly income that contributes to strong operating cash flow,” adds AM Best.
AM Best notes that despite its relative size, the underlying loans are considered to be of high credit quality and have performed as expected.
The investment and liquidity risks associated with ABS have also been included in this assessment.
NGRe is a single parent captive of Nissan, one of the world’s largest automakers.
In its role as a single parent captive, NGRe provides Nissan with a multitude of insurance coverages in the United States and abroad, including, but not limited to, extended service contracts, product liability and liability. inland navigation.
As a member of the Nissan family of companies, NGRe benefits from the group’s proprietary data warehouse, extensive risk management practices and loss control programs.