A.M. Best Affirms Ratings of Nissan Global Reinsurance, Ltd.

  A.M. Best Affirms Ratings of Nissan Global Reinsurance, Ltd.

Business Wire

OLDWICK, N.J. -- November 12, 2012

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and
issuer credit rating of “a-” of Nissan Global Reinsurance, Ltd. (NGRe)
(Hamilton, Bermuda). The outlook for both ratings is stable.

The ratings reflect NGRe’s strong capitalization and conservative operating
strategy. The ratings also consider NGRe’s critical role and favorable profile
as part of the Nissan Motor Co. Ltd. (Nissan) (NASDAQ: NSANY), as well as its
excellent operating performance since its inception in 2005.

Partially offsetting these positive rating factors are the significant
exposures NGRe has to product liability, property and marine cargo claims.
Additionally, the recent deterioration in the financial markets and the
decline in the profitability of automakers has had some impact on premium
volumes, although investment results have not been significantly affected.
Furthermore, NGRe is expecting a reversal of those trends in the current year.

NGRe is a single parent captive of Nissan, one of the largest automakers in
the world. NGRe operates two distinctive lines of business: (1) global
property/casualty programs for Nissan, which include global property (United
States, Japan, Europe, Mexico and South Africa), U.S. workers’ compensation,
U.S. and Japan product liability and marine transport and (2) a global
platform for extended service contract business. NGRe benefits from the
group’s extensive risk management and loss control programs.

NGRe operates at conservative underwriting leverage levels; however, it
provides coverages with large limits, and as such, its gross exposures per
loss occurrence are elevated. Nevertheless, A.M. Best recognizes the quality
of the substantial financial resources and support available to the captive.

NGRe’s ratings are not expected to be upgraded nor is its outlook expected to
be revised within the next 12-24 months, as its operating performance and
capital position already have been considered in the ratings process.

A.M. Best could downgrade NGRe’s ratings and/or revise its outlook if its
Best's Capital Adequacy Ratio (BCAR) score declines, operating performance and
risk profile deteriorate, its insured losses deplete capital and/or
significant changes and turnover occur in its management team, risk management
controls and tolerances.

A.M. 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 Ratings and independent data on the captive and alternative
insurance market, please visit www.ambest.com/captive.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Key criteria utilized include: “Risk Management and the Rating
Process for Insurance Companies”; “Understanding BCAR for Property/Casualty
Insurers”; and “Alternative Risk Transfer (ART). Best’s Credit Rating
Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more information,
visit www.ambest.com.

       Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


A.M. Best Co.
Fred Eslami, 908-439-2200, ext. 5406
Senior Financial Analyst
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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