AM Best has affirmed the financial strength rating of ‘A’ (excellent) and the long-term issuer credit rating of “a” (excellent) of Vermont-domiciled AES Global Insurance Company (AGIC). The outlook for the ratings is stable.
AGIC is owned by AES, a Fortune 500 energy company that operates a portfolio of generation, distribution and energy storage businesses.
As a single parent captive for AES, AGIC remains an integral part of the parent’s overall risk management framework, and the company continually evaluates the use of AGIC for the group’s risk management.
The ratings reflect AGIC’s balance sheet strength, which AM Best assesses 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.
AM Best said that AGIC continues to demonstrate strong operating performance through its favourable underwriting results, and benefits from inherently low expense structures.
The ratings reflect AGIC’s “sound risk management” capabilities with a focus on sustaining improving capitalisation, underwriting performance and conservative balance sheet strategies.