A.M. Best has affirmed the financial strength rating of “A-“ (Excellent) and the issuer credit rating of "a-" of Nissan Global Reinsurance (NGRe). The outlook for both ratings is stable.
The ratings reflect NGRe's strong capitalisation and conservative operating strategy.
A.M. Best also considered NGRe's critical role and favourable profile as part of the Nissan Motor Company, as well as its “excellent operating performance” since its inception in 2005.
Partially offsetting these positive rating factors are the significant exposures NGRe has to product liability, property and marine cargo claims.
NGRe operates global property and casualty programmes for Nissan, which include global property, global marine transport, global product and general liability and U.S. workers' compensation.
The captive is also a global platform for extended service contract business.
NGRe operates at “conservative” underwriting leverage levels according to A.M. Best, though it provides coverages with large limits and, as such, its gross exposures per loss occurrence are elevated.
Nevertheless, A.M. Best has stated that it recognises the quality of the substantial financial resources and support available to the captive.
NGRe's ratings are not expected to be upgraded, nor is its outlook expected to be revised within the next 12 to 24 months, as its operating performance and capital position already have been considered in A.M. Best's ratings process.
A.M. Best could downgrade NGRe's ratings and/or revise its outlook if its Best's Capital Adequacy Ratio (BCAR) score declines, operating performance and risk profile deteriorate, its insured losses deplete capital and/or significant changes and turnover occur in its management team, risk management controls and tolerances.
