AM Best has affirmed the financial strength rating of A (‘excellent’) of Nissan Global Reinsurance (NGRe), which is based in Bermuda. The outlook of the rating is stable.
AM Best says NGRe’s balance sheet strength is “very strong”, its operating performance “adequate”, its business profile “neutral” and its enterprise risk management “appropriate”. The neutral business profile considers NGRe’s strategic role as a captive insurer for its parent, Nissan Motor Co (Nissan).
NGRe has had 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 (BCAR), and providing “ample liquidity” for its selected risks and exposures, the ratings agency said.
In its role as a single-parent captive of one of the largest automakers in the world, NGRe provides Nissan with a host of insurance coverages in the US and elsewhere, including but not limited to extended service contracts, product liability and inland marine. As a Nissan company, NGRe benefits from the group’s proprietary data warehouse, extensive risk management practices and loss control programmes, AM Best said.