A.M. Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Nissan Global Reinsurance (NGRe), based in Bermuda.
The outlook of these credit ratings is stable.
The ratings reflect NGRe’s very strong balance sheet strength 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 captive insurer for its parent, Nissan Motor (Nissan).
The rating affirmations also reflect NGRe’s continued profitable operations, which A.M. Best says have resulted in consistent growth in surplus.
NGRe’s balance sheet strength and the risks associated with its asset-backed securities (ABS) investments support its balance sheet strength.
A.M. Best explains that although ABS investments have decreased over the past two years, they remain a material portion of NGRe’s portfolio.
“The company’s ABS investments originate at Nissan’s affiliated financing companies, which produce significant monthly income that contributes to strong operating cash flows,” A.M. Best adds.
A.M. Best notes that despite its relative size, the underlying loans are considered of high credit quality and have been performing in accordance with expectations.
The investment and liquidity risks related to ABS also were incorporated into this rating assessment.
NGRe is a single-parent captive of Nissan, one of the largest automakers in the world.
In its role as a single-parent captive, NGRe provides Nissan with a host of insurance coverages in the US and abroad, including but not limited to extended service contracts, product liability and inland marine.
As a member of the Nissan family of companies, NGRe benefits from the group’s proprietary data warehouse, extensive risk management practices and loss control programmes.
