Best Affirms National Grid ‘A’ Rating
A.M. Best Co. has affirmed the financial strength rating of “A” (Excellent) and the issuer credit rating of “a” of National Grid Insurance Company (NGICL), a captive insurer of the power company National Grid plc, based on the Isle of Man. The outlook on both ratings remains stable.
“The ratings of NGICL reflect its strong risk-adjusted capitalization and excellent operating performance,” said Best. “A partially offsetting factor is the volatile nature of claims to which the company is exposed.”
Best indicated that “NGICL’s risk-adjusted capitalization is likely to remain strong over the next two years, despite the 90 percent annual dividend payment to the parent company, and is also likely to remain supportive of the current rating level in the event of a major loss. Given the nature of business accepted, major losses are likely to occur from machinery breakdown or failure perils, which are covered by NGICL’s comprehensive reinsurance program placed with a panel of highly rated reinsurers.
“NGICL is exposed to high severity, low frequency claims, which can have a negative impact on the company’s earnings going forward, although A.M. Best expects its operating performance to remain excellent due to its strong underwriting risk assessment.”
Source: A.M. Best
- Upstate Jury Says Harley-Davidson Must Pay $287 Million for Fatal ‘Trike’ Accident
- Lowe’s Scraps Some DEI Policies as Activist Claims a New Win
- Lyft is a Motor Carrier and State Farm Can be Sued Directly, Georgia Court Says
- The Murdaugh Drama in SC Continues: Store That Sold Beer Now Suing its Insurers