Bermuda-based Nissan Global Reinsurance (NGRe) has had its “A- (Excellent)” financial strength and “a-” issuer credit ratings affirmed.
A.M. best said the ratings reflect NGRe’s strong capitalisation and improved underwriting performance over the past three years and its conservative underwriting strategy.
The ratings also consider NGRe’s role as a captive insurer for its parent, Nissan Motor Company.
A.M. Best believe that these factors are partially offset by the company’s concentration in asset-backed securities account for nearly two times policyholders’ surplus and are composed of the higher risk automobile loans originated at Nissan’s financing company.
NGRe is a single parent captive of Nissan and provides a range of insurance coverages in the US and a variety of other countries.
Coverages include global property, global marine transport, global product and general liability, workers’ compensation and a global platform for extended service contract and extended warranty business.
NGRe also benefits from the group’s proprietary data warehouse, extensive risk management practices and loss control programmes.
A.M. Best believes the ratings and outlook for NGRe are well-positioned at their current level, however, the company’s rating outlook could see positive movement if the company’s operating performance continues to improve and investment returns remain solid while maintaining a strong level of risk-adjusted capitalisation.
