Ratings agency AM Best has affirmed the financial strength rating of A (Excellent) of Delaware-domiciled group captive, Nuclear Electric Insurance Limited (NEIL).
NEIL provides essentially the entire nuclear utility property insurance coverage in the United States.
The ratings reflect NEIL’s very strong capital position, conservative operating strategy, strong enterprise risk management culture and its exclusive leadership position in the US nuclear power generating industry.
The postive ratings factors are partially offset by the company’s primary focus on catastrophic property risks and related business interruption claims, and the financial stress this could cause in the unlikely event of two full-limit losses.
NEIL has also reported volatility in underwriting results in recent years due to claims activity.
AM Best said the ratings also recognise NEIL’s history of maintaining sufficient capital to support its ongoing obligations, which include its financial flexibility to suspend policyholder distributions.
A key rating driver that could lead to positive rating action is profitability in underwriting results over the long term.
AM Best, Ratings, NEIL, North America