AM Best Affirms Credit Ratings of Nissan Global Reinsurance, Ltd.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Nissan Global Reinsurance, Ltd. (NGRe) (Hamilton, Bermuda). The outlook of these Credit Ratings (ratings) remains stable.

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

The rating affirmations reflect NGRe’s steady growth in surplus driven by consistent premium growth and favorable profitability over the past 10 years. NGRe maintains a large portion of investments in asset-backed securities (ABS), which produce significant monthly income that contributes to strong operating cash flows.

Despite the substantial proportional size of the underlying loans, these ABS instruments are considered to be of high credit quality and have performed in accordance with expectations. AM Best incorporated the investment and liquidity risks related to ABS into this rating assessment. Additionally, AM Best notes that while the auto industry will be negatively impacted by the COVID-19 pandemic NGRe’s overall balance sheet strength remains very strong and its operations remain profitable.

NGRe is a single-parent captive of Nissan Motor Co., Ltd. (Nissan), one of the largest automakers in the world. In its role as a single-parent captive, NGRe provides Nissan with a host of insurance coverages in the United States and abroad, including but not limited to extended service contracts, product liability and inland marine. As a member of the Nissan family of companies, NGRe benefits from the group’s proprietary data warehouse, extensive risk management practices and loss control programs.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and 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.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.