OLDWICK, NJ–(BUSINESS WIRE)–AM Best affirmed AMEX Assurance Company (AMEX Assurance) (Itasca, IL) financial strength rating of A (Excellent) and issuer long-term credit rating of “a+” (Excellent). AMEX Insurance is a wholly owned subsidiary of American Express Company (American Express) [NYSE: AXP]. The outlook for these Credit Ratings (ratings) is stable.
The ratings reflect the strength of AMEX Assurance’s balance sheet, which AM Best assesses as very strong, as well as its very good operational performance, its neutral business profile and its appropriate management of business risks.
AMEX Assurance’s very strong balance sheet is supported by its highest level risk-adjusted capitalization, as measured by the Best Capital Adequacy Ratio (BCAR), favorable trends in the evolution of losses, a strong liquidity position and strong underwriting leverage measures. However, the growth in surplus was limited as all of the previous year’s net income was returned to its parent company in the form of dividends to shareholders. Operating results compare favorably to the composite average for commercial real estate and benefit from a low operating cost structure. Although AMEX Assurance has a narrow business profile, as it focuses on travel-related and other ancillary products, primarily offered to American Express cardholders, it has an established reputation in the market with a distribution channel solid.
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