NOVEMBER 12, 2020 11:18 AM (EST)
AM Best Upgrades Credit Ratings of AES Global Insurance Company
|Fred Eslami |
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 12, 2020 11:18 AM (EST)
AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” of AES Global Insurance Company (AGIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect AGIC’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. The ratings also reflect the improved credit profile of AGIC’s parent, The AES Corporation (AES) [NYSE: AES].
Additionally, the ratings take into account AGIC’s continued favorable operating trends and risk-adjusted capitalization, sound risk management capabilities with a focus on sustaining improving capitalization, underwriting performance and conservative balance sheet strategies. Surplus has more than doubled over the past five years. The ratings also consider AGIC’s important role as a single-parent captive and the implied support provided by its parent. AGIC is a core element of AES’ overall risk management program, which utilizes the captive as an integral part in this process. AES’ continually evaluates the use of AGIC for other risk management objectives of the group as they arise.
AGIC is wholly owned by AES, a Fortune 500 global energy company that, through its subsidiaries and affiliates, operates a diversified portfolio of generation, distribution and energy storage businesses, which deliver safe, reliable and sustainable energy while helping organizations of all types in their clean energy transitions.
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 Guide to 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 credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.