A.M. Best Affirms Credit Ratings of AMEX Assurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--Aug 23, 2018--A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of AMEX Assurance Company (AMEX Assurance) (Itasca, IL). AMEX Assurance is a wholly owned subsidiary of American Express Company (American Express) [NYSE:AXP]. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect AMEX Assurance’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management.
AMEX Assurance’s very strong capitalization is reflective of its conservative investment risk profile, generally favorable loss reserve development trends and strong liquidity measures. Partially offsetting these positive rating factors is the constrained surplus growth, as all of the prior year’s net income has been returned to American Express in the form of stockholder dividends.
The very strong operating results have outperformed the commercial casualty composite by a wide margin over the previous 10 years. Further benefiting operating results is the favorable underwriting expense structure due to its low cost direct marketing distribution platform. Although AMEX Assurance’s business profile has a limited scope as its emphasis is on travel-related and other ancillary products offered to American Express card members, it has an established reputation in the market with a strong distribution channel.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: A.M. Best
Janet Hernandez, +1-908-439-2200, ext. 5767
Senior Financial Analyst
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
Richard Attanasio, +1-908-439-2200, ext. 5432
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
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PUB: 08/23/2018 03:54 PM/DISC: 08/23/2018 03:54 PM