Nissan Global Reinsurance (NGRe) has had its financial strength rating upgraded from A- (Excellent) to A (Excellent) and its long-term issuer credit rating upgraded from “a-” to “a” by A.M. Best.
The outlook of these ratings is stable.
NGRe’s ratings are reflective of its balance sheet strength, categorised as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The neutral business profile considers NGRe’s strategic role as a single parent-captive insurer of its parent company, Nissan Motor Company.
According to A.M. Best, the ratings upgrade is a result of the assessment of NGRe’s balance sheet strength and the risks associated with its significant asset-backed securities (ABS) investments.
These sizable ABS investments, which originate at Nissan’s affiliated financing companies, are considered of high-quality credit and have performed in accordance with expectations.
The ratings agency said: “These investments play an integral role in NGRe’s capital resources and generate substantial cash flows that also drive a principal source of earnings for NGRe.”
The investment and liquidity risks related to ABS were also incorporated into this rating assessment.
NGRe benefits from the Nissan group’s proprietary data warehouse, extensive risk management practices, and loss control programmes.
