AM Best affirms AGIC ratings

AM Best has affirmed the financial strength rating of A and the long-term issuer credit rating of “a” of AES Global Insurance Company (AGIC). The outlook of these ratings is stable.

The rating agency said that this reflects 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. The ratings also reflect the improved credit profile of AGIC’s parent, The AES Corporation.

AGIC continues to demonstrate strong operating performance through its favourable underwriting results and benefiting from inherently low expense structures. The ratings reflect AGIC’s sound risk management capabilities with a focus on sustaining improving capitalisation, underwriting performance and conservative balance sheet strategies.

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

AGIC is wholly owned by AES, a Fortune 500 global energy company that, through its subsidiaries and affiliates, operates a diversified portfolio of generation, distribution and energy storage businesses, which deliver energy while helping organisations of all types in their clean energy transitions.