A.M. Best Affirms Ratings of National Guaranty Insurance Company of Vermont

OLDWICK, N.J.--(BUSINESS WIRE)--

A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of National Guaranty Insurance Company of Vermont (NGIC) (Burlington, VT). The outlook for each rating is stable.

The ratings of NGIC reflect its excellent risk-adjusted capitalization, operating performance and liquidity positions, as well as its sophisticated risk management strategy and practices, conservative investment strategy, its management team's extended experience in the industry and the operational control of its parent, Waste Management, Inc. (WM) WM.

Partially offsetting these positive rating factors is that a large percentage of NGIC's surplus is loaned back to WM, which is supported by a 24-hour demand note. However, capital levels at NGIC are monitored by the state, and the company must maintain a certain aggregate exposure to capital ratio as prescribed by the Vermont Department of Financial Regulation.

A.M. Best views the management and corporate strategy as strengthening to the ratings, given NGIC's conservative underwriting, operational goals and transparency. A.M. Best views NGIC's enterprise risk management practices as strong given the impact on the conservative risk culture, defined risk controls and its capital and surplus. Other factors A.M. Best considered in the ratings process include, but are not limited to, the geographical diversification, the support and commitment of WM to NGIC, as well as NGIC's mission.

The company's ratings and outlooks are not expected to be upgraded within the next 12-24 months as the company's operating performance and capital position have already been considered in the ratings process. A.M. Best could lower the ratings or outlooks if the company's balance sheet strength deteriorates to a level that doesn't support its risks. A significant change in the company's risk profile or in its parent's financial condition would also impact its rating.

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 Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to rating(s) 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 Recent Rating Activity web page.

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

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