AM Best Upgrades Credit Ratings of AES Global Insurance Company

Rhea-AI Summary

AM Best has upgraded the Financial Strength Rating of AES Global Insurance Company (AGIC) from A- to A and the Long-Term Issuer Credit Rating from “a-” to “a”. The outlook for both ratings is stable. This upgrade reflects AGIC’s very strong balance sheet and solid operating performance, along with improved credit profile from its parent, The AES Corporation. AGIC's role in AES's risk management strategy is emphasized, noting sustained improvements in capitalization and underwriting performance.

Positive

• Upgrade of Financial Strength Rating to A from A-.
• Upgrade of Long-Term Issuer Credit Rating to 'a' from 'a-'.
• Stable outlook for both ratings.
• Very strong balance sheet and solid operating performance.
• AGIC's significant role in AES's risk management.

Negative

• None.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “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. The ratings also reflect the improved credit profile of AGIC’s parent, The AES Corporation (AES) [NYSE: AES].

The ratings reflect AGIC’s continued favorable operating trends and risk-adjusted capitalization, sound risk management capabilities with a focus on sustaining improving capitalization, underwriting performance and conservative balance sheet strategies. The ratings also consider AGIC’s important role as a single-parent captive and the implied support provided by its parent, AES, given the continued improvement in its parent’s credit profile. AGIC is a core element of AES’ overall risk management program, which utilizes the captive as an integral part in this process. AES continually evaluates the use of AGIC for the group’s other risk management objectives as those arise.

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

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 © 2022 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/20221123005303/en/

Chul Lee

Senior Financial Analyst

+1 908 439 2200, ext. 5036

chul.lee@ambest.com

Fred Eslami

Associate Director

+1 908 439 2200, ext. 5406

fred.eslami@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Al Slavin

Communications Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

Source: AM Best

FAQ

What recent ratings change occurred for AES Global Insurance Company (AES)?

AM Best upgraded AES Global Insurance Company's Financial Strength Rating to A from A- and the Long-Term Issuer Credit Rating to 'a' from 'a-'.

What does the stable outlook for AES Global Insurance Company's ratings signify?

The stable outlook reflects confidence in AES Global Insurance Company's financial stability and operating performance.

What factors contributed to the rating upgrades for AES Global Insurance Company?

The upgrades are attributed to the very strong balance sheet strength, strong operating performance, and improved credit profile of its parent, The AES Corporation.

How does AES Global Insurance Company's performance impact The AES Corporation?

AGIC plays a crucial role in The AES Corporation's overall risk management program.

What is the current position of AES Global Insurance Company in terms of financial stability?

AM Best assesses AGIC’s balance sheet strength as very strong, indicating solid financial stability.