The Bermuda captive of one of the world’s largest car manufacturers has had its excellent credit ratings affirmed by AM Best.

The Nissan Motor Corporation is the Japanese multinational automobile manufacturer headquartered in Yokohama, Kanagawa, Japan.

The company sells its vehicles under the Nissan and Infiniti brands, and formerly the Datsun brand.

AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Nissan Global Reinsurance Ltd of Hamilton, Bermuda. The outlook of the ratings is stable.

They reflect NGRe’s very strong balance sheet strength, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

NGRe plays a strategic role as a captive insurer for its Nasdaq-listed parent. The balance sheet strength assessment is supported by NGRe’s level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, at the strongest level.

AM Best reported: “While the company continues to generate strong annual earnings, the captive’s total surplus has declined over the past five years as its dividends returned to the parent have exceeded its earnings.

“However, the company has ample liquidity with favourable cash flows for the captive’s selected risks and exposures.

“NGRe’s adequate operating performance assessment reflects consistently favourable annual combined and operating ratios compared with industry averages, excellent revenue returns, and double-digit equity returns.”

In its role as a single-parent captive for Nissan, NGRe provides the automaker 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.

Best said: “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.

“The stable outlooks reflect AM Best's expectation that the captive will maintain its very strong balance sheet strength supported by risk-adjusted capitalisation at the strongest level, as measured by BCAR, through continued favourable operating results.

“AM Best expects there will not be changes in the parent’s ability or willingness to support the captive even as it periodically returns excess capital to the parent.”