A.M. Best Affirms Credit Ratings of AMEX Assurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of AMEX Assurance Company (AMEX Assurance) (Itasca, IL). AMEX Assurance is a wholly owned subsidiary of American Express Company (American Express) [NYSE:AXP]. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AMEX Assurance’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management.

AMEX Assurance’s very strong capitalization is reflective of its conservative investment risk profile, generally favorable loss reserve development trends and strong liquidity measures. Partially offsetting these positive rating factors is the constrained surplus growth, as all of the prior year’s net income has been returned to American Express in the form of stockholder dividends.

The very strong operating results have outperformed the commercial casualty composite by a wide margin over the previous 10 years. Further benefiting operating results is the favorable underwriting expense structure due to its low cost direct marketing distribution platform. Although AMEX Assurance’s business profile has a limited scope as its emphasis is on travel-related and other ancillary products offered to American Express card members, it has an established reputation in the market with a strong distribution channel.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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A.M. Best

Janet Hernandez, +1-908-439-2200, ext. 5767

Senior Financial Analyst

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Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

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Richard Attanasio, +1-908-439-2200, ext. 5432

Senior Director

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Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

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Source: A.M. Best