A.M. Best has revised the outlook to negative from stable and affirmed the issuer credit rating of “a+” and financial strength rating (FSR) of “A (Excellent)” of Nuclear Electric Insurance. The outlook for the FSR is stable.
The ratings reflect Nuclear Electric Insurance’s strong capital position, conservative operating strategy, strong enterprise risk management culture and exclusive leadership position in the US nuclear power generating industry.
“Nuclear Electric Insurance provides essentially 100 percent of the nuclear utility property insurance coverage in the US,” said A.M. Best in a release.
Nuclear Electric Insurance’s ratings are partially offset by the company’s primary focus on catastrophic property risks and related business interruption claims.
“The negative outlook on the ICR considers the magnitude of recent claims activity and the concerns this activity brings to the enterprise risk management exposures. “
“The company has implemented changes to its risk management, coverage for high risk perils and pricing models; however, in A.M. Best’s view it will take time for these measures to be fully tested.”
