AM Best Affirms Credit Ratings of NEWGT Reinsurance Company, Ltd.
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of
The ratings reflect NEWGT’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The balance sheet strength is well-supported by NEWGT’s risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s balance sheet strength is also underpinned by its conservative investment strategy and healthy capital structure. Although the company has moderate reliance on reinsurance, this risk is mitigated by its high quality and well-diversified reinsurance panel.
NEWGT’s operating performance has been consistently stable and profitable with a five-year average (2016-2020) net loss ratio and net combined ratio of 68% and 94%, respectively. For the fiscal year ended
NEWGT is a wholly owned subsidiary of ITOCHU Corporation (ITOCHU), one of Japan’s largest general trading companies listed on the
Negative rating actions could occur if there is a substantial increase in underwriting losses caused by a material increase in its risk appetite. Negative rating actions could also arise if there is significant deterioration in ITOCHU’s credit profile, including its operating profitability, financial leverage and interest coverage levels.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best
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