AM Best Affirms Credit Ratings of National Guaranty Insurance Company of Vermont
09 Juin 2023 - 4:22PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of National Guaranty Insurance Company of Vermont
(NGIC) (Burlington, VT). The outlook of these Credit Ratings
(ratings) is stable.
The ratings reflect NGIC’s balance sheet strength, which AM Best
assesses as very strong, as well as its strong operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
The ratings also reflect NGIC’s strategic role as the captive
insurance company of Waste Management, Inc. (WM) [NYSE: WM], one of
the leading providers of comprehensive waste management
environmental services in North America. As a strategic and
integral part of WM’s ERM program, the parent wholly funded the
captive’s capitalization in the form of a demand note that
generates net investment income to augment surplus annually.
Further supplements have been provided in form of letters of credit
as changes in exposures warrant. NGIC benefits from WM’s robust
risk management strategies, which enable it to support a portion of
WM’s financial assurance program efficiently and appropriately.
NGIC’s surplus growth is organic and steady as the company has
been able to enhance its profitability over the past five years by
significantly reducing its underwriting expenses. It has not had
any losses in the program; however, NGIC has an expense ratio that
is higher than others in the surplus lines composite due to the
nature of the financial assurance line of business and expenses
focused on its comprehensive risk mitigation.
Positive rating action could occur if a sustained positive trend
in balance sheet strength continues in the near term. Negative
rating action could occur if AM Best's perception of the parent’s
ability and willingness to support the captive changes
significantly. Negative rating impact also could occur if the
company’s balance sheet strength or risk-based capitalization
weakens materially to a level that does not support its risks.
AM Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the
United States and throughout the world. For current Best’s Credit
Ratings and independent data on the captive and alternative risk
transfer insurance market, please visit
www.ambest.com/captive.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20230609005277/en/
Kourtnie Beckwith CPCU, AU, AMIM Senior Financial
Analyst +1 908 439 2200, ext. 5124
kourtnie.beckwith@ambest.com
Dan Teclaw Director +1 908 439 2200, ext.
5394 dan.teclaw@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 439 2200, ext. 5098 al.slavin@ambest.com
Waste Management (NYSE:WM)
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