The ratings reflect NGI’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
NGI’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also factors in the company’s good level of liquidity and absence of financial leverage. Offsetting rating factors include NGI’s high dependence on reinsurance and the concentration of its invested assets in the
The company’s strong operating performance, evidenced by a five-year (2014-2018) weighted average return on equity of 8%, has been driven by robust and improving underwriting results from its non-life portfolio. NGI has demonstrated good underwriting performance across all key non-life lines of business, with a five-year average combined ratio of 91%, excluding unallocated expenses. Operating performance is supported further by stable investment income, with a five-year average investment return (excluding gains) of 3%, in part assisted by the de-risking of the investment portfolio in recent years away from volatile equity investments.
NGI’s profile is limited, due in part to its concentration to the highly competitive
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Source: AM Best