AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to 'bbb+' (Good) from 'bbb' (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of
The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR is stable.
These Credit Ratings (ratings) reflect ZIC's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The upgrade in ZIC's operating performance to adequate from marginal is supported by management's decision to retain its operations as a contractual liability insurance policy (CLIP) provider for its ultimate parent,
As a captive insurer of
ZIC's ratings reflect its solid level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), strong liquidity and the high credit quality of its investment portfolio. Offsetting rating factors include a limited business profile and limited organic capital growth due to the small size and scope of its operations.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in
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.
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