AP NEWS

AM Best Upgrades Credit Ratings of NiSource Insurance Corporation, Inc.

December 5, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Dec 5, 2018--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of NiSource Insurance Corporation, Inc. (NICI) (Salt Lake City, Utah). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect NICI’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

NICI is a single parent captive insurer wholly owned by NiSource Inc. that accepts insurance risks from NiSource and its affiliates, providing all risk property, workers’ compensation, general and automobile liability, cyber liability, medical stop-loss, long term disability and group life insurance.

NICI has produced consistently profitable net operating income each year since 2010 from underwriting and investment income. Its balance sheet strength has been bolstered through retained earnings. Over the past five years, surplus has grown significantly. AM Best believes NICI is well-positioned to sustain a strong level of operating performance due to its demonstrated risk management expertise and conservative underwriting criteria, hence, the stable outlooks.

AM Best has taken a favorable view of NICI’s overall profile within the ultimate parent’s structure and recognizes the benefits inured from this. Particular attention is paid to the active involvement of NiSource’s senior management in the captive’s operation.

Positive ratings triggers include sustained positive operating results and improved risk-adjusted capitalization.

Nonetheless, downward rating pressure could result from a decline in the company’s liquidity levels, an increase in underwriting leverage or outsized catastrophe or investment losses in conjunction with a significant prolonged decline in risk-adjusted capitalization. In addition, financial issues resulting in ratings pressure on the ultimate parent could impact NICI’s ratings.

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 .

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 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 AM Best press releases, please view .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181205005640/en/

CONTACT: Fred Eslami

Associate Director

+1 908 439 2200, ext. 5406

fred.eslami@ambest.comDaniel J. Ryan

Senior Director

+1 908 439 2200, ext. 5325

daniel.ryan@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: AM Best

Copyright Business Wire 2018.

PUB: 12/05/2018 12:22 PM/DISC: 12/05/2018 12:22 PM

http://www.businesswire.com/news/home/20181205005640/en

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