AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Bermudian-based Nissan Global Reinsurance Ltd, a captive insurer for its automaker parent.

The outlook of these credit ratings is stable.

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

The neutral business profile considers NGRe’s strategic role as a captive insurer for Nissan Motor Co Ltd.

NGRe’s balance sheet strength is assessed as very strong with risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy ratio, as well as consistent strong earnings that drive its surplus growth.

Additionally, favourable cash flows provide ample liquidity for the captive’s selected risks and exposures.

NGRe’s adequate operating performance reflects its profitable results through the last decade, with its combined ratio improving year over year during the last five-year period. While the primary drivers of NGRe’s profitability are its global product liability and extended service contract lines, the captive continues to penetrate its current market with fresh product offerings.

In its role as a single-parent captive for Nissan, one of the largest automakers in the world, 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 programmes.