LONDON–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a” of National
Grid Insurance Company (Isle of Man) Limited (NGICL), a captive insurer
of National Grid plc (NG). The outlook of these Credit Ratings (ratings)
is stable.
The ratings reflect NGICL’s balance sheet strength, which AM Best
categorises as very strong, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management.
NGICL’s balance sheet strength is underpinned by risk-adjusted
capitalisation at the strongest level, as measured by Best’s Capital
Adequacy Ratio (BCAR). AM Best expects NGICL’s prospective risk-adjusted
capitalisation to remain at the strongest level, underpinned by the
captive’s low underwriting leverage and comprehensive reinsurance
programme.
NGICL has a track record of strong underwriting performance, as
evidenced by a five-year (2014-2018) weighted average combined ratio of
45%. Prospective operating performance remains subject to volatility,
due to the captive’s exposure to low frequency, high severity losses in
its property damage and business interruption account. However, the
impact of large losses on the captive’s balance sheet is mitigated
partly by extensive reinsurance protection.
NGICL’s neutral business profile assessment reflects its core role in
NG’s risk management strategy as its principal captive. It is
well-integrated into NG’s overall risk management framework, and its
primary objective is to mitigate the NG group’s European financial
exposure to casualty, cyber, property damage and business interruption
risks.
AM Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated 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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by AM Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Martina Seydoux
Financial Analyst
+44 20 7397
0308
[email protected]
Ghislain
Le Cam, CFA, FRM
Director, Analytics
+44 20 7397
0268
[email protected]
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
[email protected]
Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
[email protected]
