AM Best Affirms Credit Ratings of AES Global Insurance Company

Rhea-AI Summary

AM Best has affirmed the A (Excellent) Financial Strength Rating and 'a' (Excellent) Long-Term Issuer Credit Rating of AES Global Insurance Company (AGIC) with a stable outlook. The ratings reflect AGIC's very strong balance sheet, strong operating performance, and appropriate risk management. As a single-parent captive for The AES [NYSE: AES], AGIC demonstrates favorable underwriting results and low expense structure while serving as an integral part of AES's risk management framework. The ratings acknowledge AGIC's strategic importance to AES, a Fortune 500 global energy company operating in generation, distribution, and energy storage.

Positive

• Maintained A (Excellent) Financial Strength Rating
• Very strong balance sheet assessment
• Strong operating performance with favorable underwriting results
• Low expense structure
• Strategic importance to Fortune 500 parent company AES

Negative

• None.

Insights

Insurance Industry Analyst

The affirmation of AGIC's <b>A (Excellent)</b> rating by AM Best is a strong positive indicator for AES 's risk management capabilities. This captive insurance subsidiary maintains a very strong balance sheet and demonstrates consistent operating performance, which directly benefits the parent company's financial stability. The stable outlook reflects AGIC's conservative approach and successful integration into AES's broader risk management framework.

The rating strength particularly matters for AES's global energy operations, as it indicates robust financial protection against operational risks across their diverse portfolio of generation, distribution and energy storage assets. This insurance capability becomes increasingly valuable as AES expands its clean energy transition services, where new technological and operational risks may emerge.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of AES Global Insurance Company (AGIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.

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.

AGIC continues to demonstrate strong operating performance through its favorable underwriting results and from an inherently low expense structure. The ratings reflect AGIC’s sound risk management capabilities with a focus on sustaining improved capitalization, underwriting performance and conservative balance sheet strategies. As a single-parent captive for The AES Corporation (AES) [NYSE: AES], AGIC remains an integral extension of its parent’s overall risk management framework. Additionally, AES continually evaluates the use of AGIC for the group’s risk management objectives as they arise. The ratings also consider AGIC’s strategic importance to AES and the implied support provided by AES.

AGIC is wholly owned by AES, a Fortune 500 global energy company, which through its subsidiaries and affiliates, operates a diversified portfolio of generation, distribution and energy storage businesses that delivers safe, reliable and sustainable energy while helping organizations of all types in their clean energy transitions.

AM 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.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241114555165/en/

Sebastian Caballero

Financial Analyst

+1 908 882 1680

sebastian.caballero@ambest.com



Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com



Fred Eslami

Associate Director

+1 908 882 1759

fred.eslami@ambest.com



Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

FAQ

What credit rating did AM Best affirm for AES Global Insurance Company in 2024?

AM Best affirmed an A (Excellent) Financial Strength Rating and 'a' (Excellent) Long-Term Issuer Credit Rating for AES Global Insurance Company, with a stable outlook.

How does AM Best assess AES Global Insurance Company's balance sheet strength?

AM Best assesses AES Global Insurance Company's balance sheet strength as 'very strong', supported by favorable underwriting results and conservative balance sheet strategies.

What is the relationship between AES Global Insurance Company and AES (NYSE: AES)?

AES Global Insurance Company (AGIC) is a wholly-owned single-parent captive insurance company of AES , serving as an integral extension of its parent's overall risk management framework.