AM Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit ratings of “a+” (excellent) of Vermont-domiciled Ameriprise Captive Insurance Company (ACIC).
The captive is a subsidiary of Minneapolis-based Ameriprise Financial.
ACIC provides various coverages to its parent including errors and omissions policies, a workers’ compensation deductible reimbursement policy, fidelity bonds and property terrorism (conventional and nuclear, biological, chemical or radiological).
The ratings of ACIC reflect its 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 (ERM).
ACIC benefits from rating enhancement due to its importance as a single parent captive to the parent.
AM Best assesses ACIC’s business profile as limited due to its narrow market focus as a single parent captive serving only its parent for a limited amount of exposure.
The captive has a strong operating performance as demonstrated by its five-year average pre-tax return on revenue and equity ratios that compare favourably with the averages for AM Best’s commercial casualty composite.
ACIC also benefits from a very low expense ratio.