AM Best has affirmed the financial strength rating of A (Excellent) and the Long-term issuer credit rating of “a” (Excellent) for Nissan Global Reinsurance, Ltd (NGRe), based in Hamilton, Bermuda. The outlook for these ratings remains stable.
The ratings are based on NGRe’s balance sheet strength, which AM Best evaluates as very strong, along with its adequate operating performance, neutral business profile, and appropriate enterprise risk management. NGRe’s business profile reflects its strategic role as a captive insurer for its parent company, Nissan Motor Co, Ltd.
Despite strong annual earnings, AM Best says that NGRe’s total surplus has decreased over the past five years due to dividends returned to its parent company exceeding its earnings. However, the company maintains sufficient liquidity and favorable cash flows to manage its selected risks and exposures.
According to the credit agency, NGRe’s operating performance is assessed as adequate, with consistently favorable annual combined and operating ratios compared to industry averages, excellent revenue returns, and double-digit equity returns.
As a single-parent captive for Nissan, one of the world’s largest automakers, AM Best notes that NGRe provides a range of insurance coverages in the United States and internationally, including extended service contracts, product liability, and inland marine. Being part of the Nissan group, NGRe benefits from access to the company’s proprietary data warehouse, extensive risk management practices, and loss control programs.
The stable outlooks reflect AM Best's expectation that NGRe will maintain its very strong balance sheet strength, supported by risk-adjusted capitalization at the strongest level, as measured by BCAR, through continued favorable operating results.
AM Best also anticipates no significant changes in Nissan’s ability or willingness to support its captive insurer, even as NGRe periodically returns excess capital to its parent.
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