Nissan Global Re's rating affirmed

Nissan Motor Company's captive insurer has had its financial strength rating of A (Excellent) afirmed by AM Best. The outlook is stable.

AM Best said the ratings reflect Nissan Global Reinsurance's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

NGRe’s balance sheet strength is assessed as very strong with risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as consistent strong earnings that drive its surplus growth.

It added: " Favourable cash flows provide ample liquidity for the captive’s selected risks and exposures. NGRe’s adequate operating performance reflects its profitable results through the last decade, with its combined ratio improving year over year during the last five-year period.

"While the primary drivers of NGRe’s profitability are its global product liability and extended service contract lines, the captive continues to penetrate its current market with fresh product offerings."