AM Best has affirmed the financial strength rating of A (Excellent) of Nissan Global Reinsurance, the Bermuda-based captive for global carmaker Nissan Motor Co.
Best said the outlook is stable, adding the ratings reflect NGRe’s very strong balance sheet strength, its adequate operating performance, neutral business profile and appropriate enterprise risk management.
"NGRe’s balance sheet strength is assessed as very strong with risk-adjusted capitalisation at the strongest level, as well as consistent strong earnings that drive its surplus growth," Best said. "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, one of the largest automakers in the world,"