AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” of AES Global Insurance Company (AGIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect AGIC’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the improved credit profile of AGIC’s parent, The AES Corporation (AES) [NYSE: AES].
Additionally, the ratings take into account AGIC’s continued favorable operating trends and risk-adjusted capitalization, sound risk management capabilities with a focus on sustaining improving capitalization, underwriting performance and conservative balance sheet strategies. Surplus has more than doubled over the past five years. The ratings also consider AGIC’s important role as a single-parent captive and the implied support provided by its parent. AGIC is a core element of AES’ overall risk management program, which utilizes the captive as an integral part in this process. AES’ continually evaluates the use of AGIC for other risk management objectives of the group as they arise.
AGIC is wholly owned by AES, a Fortune 500 global energy company that, through its subsidiaries and affiliates, operates a diversified portfolio of generation, distribution and energy storage businesses, which deliver safe, reliable and sustainable energy while helping organizations of all types in their clean energy transitions.
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.
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