Allstate’s Bermuda subsidiary gets A rating

Allstate subsidiary National General Insurance has been assigned an A rating by AM Best with a stable outlook. 

The Bermuda-based Class 3A insurer received the rating based on its very strong capital balance sheet strength and said it had a limited business profile given its plan to acquire business from affiliated companies in the United Kingdom, Europe and Canada. 

“The balance sheet assessment of very strong is based on capital capacity that meets AM Best’s guidelines and which is expected to support the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), through the near term,” the ratings agency said. 

“Adding to the capital strength, is the benefit NGIL derives from being part of The Allstate Corporation’s group of insurance companies. 

“AM Best assesses NGIL’s operating performance as adequate based on the five-year business plan and takes into consideration the inherent level of execution risk. 

“Negative rating actions may occur if the strategic importance of NGIL diminishes, if actual operating performance falls materially below the business plan or if balance sheet metrics no longer support a very strong assessment.”

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