A.M. Best Affirms Ratings of National Grid Insurance Company (Isle of Man) Ltd.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of National Grid national grid Noun Brit & NZ 1. a network of high-voltage power lines linking major electric power stations 2. the arrangement of vertical and horizontal lines on an ordnance survey map Insurance Company (Isle of Man Noun 1. Isle of Man - one of the British Isles in the Irish Sea Man British Isles - Great Britain and Ireland and adjacent islands in the north Atlantic ) Ltd. (NGICL), a captive of National Grid plc National Grid plc is a United Kingdom based utilities company which also operates in other countries, principally in the United States. The company adopted its current name in July 2005 when shareholders agreed the change from National Grid Transco plc. . The outlook on both ratings remains stable. The ratings of NGICL reflect its strong risk-adjusted capitalisation and excellent operating performance. A partially offsetting factor is the volatile nature of claims to which the company is exposed. A.M. Best believes that NGICL's risk-adjusted capitalisation is likely to remain strong over the next two years, despite the 90% 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 The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. programme 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 Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. risk assessment. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion