AM Best has revised the outlooks to ‘positive’ from 'stable’ for the National Guaranty Insurance Company of Vermont (NGIC), Waste Management’s captive.
The agency also affirms the financial strength rating of ‘A-’ (Excellent) and the long-term issuer credit rating of ‘a-’ (Excellent) of NGIC.
The ratings reflect the company’s balance sheet strength, which AM Best assesses as ‘very strong’, as well as its strong operating performance, limited business profile, and appropriate enterprise risk management (ERM).
The revision of the outlooks to ‘positive’ recognises NGIC’s favourable operating results over the past decade, demonstrated by consistently strong underwriting and return on revenue metrics.
According to AM Best, the captive has produced exceptional annuals, with five-year and ten-year average combined ratios outperforming the industry and its peers by wide margins.
The rating agency expects that NGIC will continue to produce favourable operating results prospectively, driven by the organisation’s extensive loss controls, which have resulted in a loss-free history for the captive.
The positive outlook also considers the continuation of NGIC’s very strong balance sheet, with organic surplus growth, and the company maintaining its strongest level of risk-adjusted capitalisation.
NGIC's ratings reflect its crucial role as Waste Management's captive insurance company, benefiting from robust risk management strategies and financial backing, including capitalisation and credit support.
The captive has a limited business profile, is licensed in two states, and operates in 27 states as a non-admitted insurer to meet the financial assurance obligations of its parent. The captive’s ERM is considered appropriate as a focused insurance company that leverages its expertise to benefit policyholders.
