AM Best affirms ratings of AES Corporation’s captive

AM Best has affirmed the Financial Strength Rating of A (Excellent) of AES Global Insurance Company, a single-parent captive for The AES Corporation, a Fortune 500 global energy company.

It said the ratings reflect AGIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

It added that AGIC continues to demonstrate strong operating performance through its favourable underwriting results and from an inherently low expense structure inherit to its nature as a single-parent captive.

Reflected in the ratings are AGIC’s sound risk management capabilities with a focus on sustaining improved capitalization, underwriting performance and conservative balance sheet strategies.

As a single-parent captive for The AES Corporation, AGIC remains an integral extension of its parent’s overall risk management framework. Additionally, AES continually evaluates the use of AGIC for the group’s risk management objectives as they arise. The ratings also consider AGIC’s strategic importance to AES and the implied support provided by AES, AM Best said.

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