Ratings agency AM Best has affirmed the financial strength rating of A- (Excellent) of National Guaranty Insurance Company of Vermont (NGIC), based in Burlington.
The outlook of these ratings is stable, and reflects NGIC’s excellent risk-adjusted capitalisation, operating performance and liquidity position, along with its sophisticated risk management strategy and practices, conservative investment strategy, its management team’s extended experience in the industry and the operational control of its parent, Waste Management (WM).
The positive ratings factors are partially offset by the fact a large percentage of NGIC’s surplus is loaned back to WM, which is supported by a 24-hour demand note.
Capital levels at NGIC are monitored by the Vermont Department of Financial Regulation, which requires the company to maintain a certain aggregate exposure to capital ratio.
“AM Best views the management and corporate strategy as strengthening to the ratings, given NGIC’s conservative underwriting, operational goals and transparency,” said AM Best. “AM Best views NGIC’s enterprise risk management practices as strong given the impact on the conservative risk culture, defined risk controls and its capital and surplus.
“Other factors AM Best considered in the ratings process include, but are not limited to, the geographical diversification, the support and commitment of WM to NGIC, as well as NGIC’s mission.”
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AM Best, National Guaranty Insurance Company of Vermont, Waste Management, Captives, Ratings, North America