AM Best Assigns A-Rating To National Insurance
AM Best has assigned a Financial Strength Rating of A [Excellent] and a Long-Term Issuer Credit Rating of “a” [Excellent] to National General Insurance Ltd. [NGIL] [Hamilton, Bermuda]. The outlook assigned to these Credit Ratings [ratings] is stable.
A statement from the ratings agency said, “The ratings reflect NGIL’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management [ERM].
“The balance sheet assessment of very strong is based on capital capacity that meets AM Best’s guidelines and which is expected to support the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio [BCAR], through the near term. Adding to the capital strength, is the benefit NGIL derives from being part of The Allstate Corporation’s group of insurance companies.
“AM Best assesses NGIL’s operating performance as adequate based on the five-year business plan and takes into consideration the inherent level of execution risk. AM Best assesses the company’s business profile as limited given its plan to acquire business from affiliated companies in the United Kingdom, Europe and Canada. AM Best assesses NGIL’s ERM as appropriate as the company shares an ERM with its sister companies.
“Negative rating actions may occur if the strategic importance of NGIL diminishes, if actual operating performance falls materially below the business plan or if balance sheet metrics no longer support a very strong assessment.”
