Press Release - DECEMBER 05, 2018

AM Best Upgrades Credit Ratings of NiSource Insurance Corporation, Inc.


CONTACTS:
 Fred Eslami
Associate Director
+1 908 439 2200, ext. 5406
fred.eslami@ambest.com

Daniel J. Ryan
Senior Director
+1 908 439 2200, ext. 5325
daniel.ryan@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 05, 2018
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of NiSource Insurance Corporation, Inc. (NICI) (Salt Lake City, Utah). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect NICI’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

NICI is a single parent captive insurer wholly owned by NiSource Inc. that accepts insurance risks from NiSource and its affiliates, providing all risk property, workers’ compensation, general and automobile liability, cyber liability, medical stop-loss, long term disability and group life insurance.

NICI has produced consistently profitable net operating income each year since 2010 from underwriting and investment income. Its balance sheet strength has been bolstered through retained earnings. Over the past five years, surplus has grown significantly. AM Best believes NICI is well-positioned to sustain a strong level of operating performance due to its demonstrated risk management expertise and conservative underwriting criteria, hence, the stable outlooks.

AM Best has taken a favorable view of NICI’s overall profile within the ultimate parent’s structure and recognizes the benefits inured from this. Particular attention is paid to the active involvement of NiSource’s senior management in the captive’s operation.

Positive ratings triggers include sustained positive operating results and improved risk-adjusted capitalization.

Nonetheless, downward rating pressure could result from a decline in the company’s liquidity levels, an increase in underwriting leverage or outsized catastrophe or investment losses in conjunction with a significant prolonged decline in risk-adjusted capitalization. In addition, financial issues resulting in ratings pressure on the ultimate parent could impact NICI’s ratings.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
046728 NiSource Inc.
022608 NiSource Insurance Corporation, Inc.