Nissan Global Reinsurance (NGRe), the single parent captive of global car manufacturer Nissan Motor Corporation (Nissan), has had its financial strength rating of A (Excellent) and long-term issuer credit rating of “a” affirmed by A.M. Best.
The outlook of the Bermuda-based captive’s ratings remains stable.
As a single-parent captive, NGRe provides Nissan with a host of insurance coverages in the US and abroad, including extended service contracts, product liability, and inland marine.
The affirmed ratings reflect NGRe’s “very strong” balance sheet, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management.
Additionally, they reflect the captive’s continued profitable operations, which have resulted in significant surplus growth.
A large portion of NGRe’s investments are maintained in asset-backed securities (ABS), which produce significant monthly income that contributes to strong operating cash flows.
A.M. Best incorporated the investment and liquidity risks related to ABS into this rating assessment, and noted: “despite the substantial relative size of the underlying loans, they are considered to be of high credit quality and have been performing in accordance with expectations”.
NGRe is a member of the Nissan family of companies, and, therefore, benefits from the group’s proprietary data warehouse, extensive risk management practices, and loss control programmes.
