AM 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) (Hamilton, Bermuda). The outlook of these ratings is stable. AM Best says the ratings reflect NGRe’s balance sheet strength, which it assesses as “very strong”, 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 Company. NGRe’s balance sheet has risk adjusted capitalisation at the “strongest level”, as measured by AM Best’s Capital Adequacy Ratio. It has consistent strong earnings that drive its surplus growth. Additionally, favourable cash flows provide ample liquidity for the captive’s selected risks and exposures. NGRe’s adequate operating performance reflects its profitable results through the last decade, with its combined ratio improving year over year during the last five-year period. While the primary drivers of NGRe’s profitability are its global product liability and extended service contract lines, the captive continues to penetrate its current market with fresh product offerings. In its role as a single-parent captive for Nissan, NGRe provides Nissan with a host of insurance coverages globally, including extended service contracts, product liability and inland marine.
