Rating affirmed for Nissan’s Bermuda captive
AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Bermudian-based Nissan Global Reinsurance Ltd, the captive insurer for the automobile manufacturing giant.
The outlook of these credit ratings is stable.
The agency said the ratings reflected NGRe’s balance sheet strength, which AM Best assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The neutral business profile considers NGRe’s strategic role as a captive insurer for its parent, Nissan Motor Co Ltd.
The rating affirmations reflect NGRe’s continued profitable operations, which have resulted in consistent growth in surplus, sustaining its strongest risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, and providing ample liquidity for its selected risks and exposures.
In its role as a single-parent captive, AM Best said, NGRe provided 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.