OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to “bbb” from “bbb-” of AES Global Insurance Company (AGIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
The rating upgrades reflect AGIC’s continued favorable operating trends and adequate risk-adjusted capitalization, sound risk management capabilities with a focus on sustaining good capitalization, underwriting performance and conservative balance sheet strategies. The ratings also consider AGIC’s important role as a single-parent captive and the implied support provided by its parent, AES Corporation (AES Corp.) [NYSE: AES]. AGIC is a core element of AES Corp’s overall risk management program, which utilizes the captive as an integral part in this process. AES Corp. continually evaluates the use of AGIC for other risk management objectives of the group as those arise.
AGIC is wholly owned by AES Corp., a global power company that owns a diverse and growing portfolio of electricity generation and distribution businesses operating in 16 countries.
Partially offsetting these positive rating factors is AGIC’s exposure to large losses due to the policy limits offered, its limited market scope and limited business profile being solely dependent on the parent company’s business opportunities for its growth prospects.
A.M. 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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