AM Best Information Services




FEBRUARY 19, 2021 12:10 PM (EST)

AM Best Affirms 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
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Jim Peavy
Director, Communications
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james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - FEBRUARY 19, 2021 12:10 PM (EST)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of NiSource Insurance Corporation, Inc. (NICI) (Salt Lake City, UT). The outlook of these Credit Ratings (ratings) is 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., which accepts insurance risks from NiSource and its affiliates, providing all-risk property, workers’ compensation, excess general and automobile liability, medical stop-loss, long term disability and group life insurance.

Since inception, NICI has produced profitability measures that generally have been at levels equal to or better than its industry peers. Over the years, retained earnings have bolstered its balance sheet strength. AM Best believes NICI will remain well-capitalized and is positioned to sustain a strong level of operating profits 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 also is paid to its strategic role as a single-parent captive and the financial wherewithal of its ultimate parent.

Downward rating pressure could result from a decline in the company’s operating performance, an increase in underwriting leverage or an outsized loss event that triggers a sudden decline in risk-adjusted capitalization. In addition, financial issues resulting in rating 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 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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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