AM Best Affirms Credit Ratings of National Guaranty Insurance Company of Vermont - Waste Management (NYSE
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of National Guaranty Insurance Company of Vermont (NGIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect NGIC's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
The ratings also reflect NGIC's strategic role as the captive insurance company of Waste Management, Inc. (WM) WM, one of the leading providers of comprehensive waste management environmental services in North America. As a strategic and integral part of WM's ERM program, the parent wholly funded the captive's capitalization in the form of a demand note that generates net investment income to augment surplus annually. Further supplements have been provided in form of letters of credit as changes in exposures warrant. NGIC benefits from WM's robust risk management strategies, which enable it to support a portion of WM's financial assurance program efficiently and appropriately.