OLDWICK, NJ, August 22, 2024–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Nissan Global Reinsurance, Ltd. (NGRe) (Hamilton, Bermuda). The outlook of these credit ratings is stable.
The ratings reflect NGRe’s balance sheet strength, which AM Best considers to be very strong, as well as the company’s adequate operating performance, neutral business profile and adequate risk management. The neutral business profile takes into account NGRe’s strategic role as a captive insurer for its parent company Nissan Motor Co., Ltd. (Nissan) (NASDAQ: NSANY).
The balance sheet strength rating is supported by NGRe’s risk-adjusted capitalization, which is at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR). While the company continues to generate strong annual earnings, the captive’s total net income has declined over the past five years as dividends paid to the parent company exceeded earnings. However, the company has ample liquidity with favorable cash flows for the captive’s selected risks and exposures. NGRe’s adequate operating performance rating reflects consistently favorable annual combined and operating metrics compared to industry averages, excellent operating margins and double-digit returns on equity. In its role as the sole parent of Nissan, one of the world’s largest automakers, NGRe provides Nissan with a variety of insurance coverage in the United States and abroad, including, but not limited to, extended service contracts, product liability and inland marine. As a member of the Nissan group of companies, NGRe benefits from the group’s proprietary data warehouse as well as comprehensive risk management practices and loss control programs.
The stable outlook reflects AM Best’s expectation that the captive will maintain its very strong balance sheet strength, supported by risk-adjusted capitalization at the strongest level (as measured by BCAR), through continued positive operating results. AM Best expects that the parent’s ability or willingness to support the captive will not change, even if it returns excess capital to the parent at regular intervals.
AM Best remains the leading rating agency for alternative risk transfer companies, rating more than 200 such companies in the United States and worldwide. Current Best credit ratings and independent data on the captive and alternative risk transfer insurance market can be found at www.ambest.com/captive.
This press release refers to credit ratings published on AM Best’s website. All rating information related to this publication and related disclosures, including the identification of the bureau responsible for assigning each credit rating mentioned in this press release, can be found on AM Best’s website. Current review activity Website. For more information on the use and limitations of credit rating opinions, see Guide to Best Credit Ratings. For information regarding the proper use of AM Best’s credit ratings, performance ratings, preliminary credit ratings and press releases, please visit Guide to the correct use of Best’s ratings and reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in over 100 countries and has offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2024 AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View original version on businesswire.com: https://www.businesswire.com/news/home/20240822513783/en/
Contacts
Chul Lee
Senior Financial Analyst
+1 908 882 2005
[email protected]
Christopher Sharkey
Deputy Director, Public Relations
+1 908 882 2310
[email protected]
Daniel Teclaw
director
+1 908 882 2390
[email protected]
Al-Slavin
Senior PR Specialist
+1 908 882 2318
[email protected]
