The Isle of Man pure captive owned by National Grid plc has had its financial strength rating affirmed ‘A-‘ (Excellent) and its long-term issuer credit rating affirmed as “a-” (Excellent).
National Grid Insurance Company (Isle of Man) Limited provides a broad range of coverage to its parent including for property damage business interruption (PDBI), casualty and cyber.
Despite “significant losses on its PDBI book in financial years 2021 and 2022”, AM Best said the captive had a healthy five-year (2020-2024) weighted average combined ratio of 75%.
“Prospectively, AM Best expects the captive’s underwriting performance to be favourable over the longer term, albeit subject to potential volatility given its high net line sizes relative to its premium base,” the ratings agency said.
AM Best stated that the captive’s balance sheet is “very strong” with the ratings also reflecting its adequate operating performance, neutral business profile and appropriate enterprise risk management.