A.M. Best has affirmed the financial strength rating of “B++” (Good) and the long-term issuer credit rating of “bbb+” of AES Global Insurance Company (AGIC), the single-parent captive of AES Corporation, based in Burlington, Vermont.
The ratings reflect AGIC’s balance sheet strength, which A.M. Best categorises as “very strong”, as well as its “strong” operating performance, “neutral” business profile and “appropriate” enterprise risk management.
The ratings also reflect the business and financial profiles of AGIC’s parent, AES Corporation, which A.M. Best said: “continue to improve”.
According to A.M. Best, the ratings also take into account AGIC’s continued favourable operating trends and risk-adjusted capitalisation, sound risk management capabilities with a focus on sustaining improving capitalisation, underwriting performance and conservative balance sheet strategies.
The rating firm said that AGIC’s surplus has more than doubled over the past five years.
AGIC’s role as a single-parent captive was also taken into consideration and the implied support provided by its parent.
The captive is a core element of AES Corporation’s overall risk management programme, which utilises the captive as an integral part of this process.
AGIC is wholly owned by AES Corporation, a global power company that owns a portfolio of electricity generation and distribution businesses operating in 14 countries.
