AM Best Affirms Credit Ratings of National Guaranty Insurance Company of Vermont
May 26 2022 - 11:44AM
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.
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 enterprise risk management 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 efficiently
and appropriately support a portion of WM’s financial assurance
program. The company has had no losses in the program but has an
expense ratio that compares unfavorably with the surplus lines
composite due to the nature of the financial assurance line of
business and expenses focused on risk mitigation. Nonetheless, the
company has been able to reduce underwriting expenses significantly
over the past five years to further benefit operating and net
income.
The stable outlooks reflect AM Best’s expectations that the
company will maintain its very strong balance sheet strength and
strong operating performance through active risk identification and
assessment strategies.
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 © 2022 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/20220526005622/en/
Kourtnie Beckwith, CPCU, AU, AMIM Financial
Analyst +1 908 439 2200, ext. 5124
kourtnie.beckwith@ambest.com
Dan Teclaw Associate Director +1 908 439 2200,
ext. 5394 dan.teclaw@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jeff Mango Managing Director, Strategy &
Communications +1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com
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