AM Best Affirms Credit Ratings Of Nissan Global

May 15, 2020

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.

A statement from the ratings agency said, “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.“

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