Press Release - APRIL 12, 2019
AM Best Affirms Credit Ratings of Nissan Global Reinsurance, Ltd.
FOR IMMEDIATE RELEASE
OLDWICK - APRIL 12, 2019
The ratings reflect NGRe’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating affirmations reflect NGRe’s continued profitable operations, which have resulted in significant surplus growth. NGRe maintains a large portion of investments in asset-backed securities (ABS), which produce significant monthly income that contributes to strong operating cash flows. Despite the substantial relative size of the underlying loans, they are considered to be of high credit quality and have been performing in accordance with expectations. AM Best incorporated the investment and liquidity risks related to ABS into this rating assessment.
NGRe is a single-parent captive of Nissan Motor Co., Ltd. (Nissan), one of the largest automakers in the world. In its role as a single-parent captive, NGRe provides Nissan with a host of insurance coverages 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 family of companies, NGRe benefits from the group’s proprietary data warehouse, extensive risk management practices and loss control programs.
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.
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