A.M. Best Affirms Credit Ratings of AMEX Assurance Company
September 19 2016 - 3:53PM
Business Wire
A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+” of
AMEX Assurance Company (AMEX Assurance) (Chicago, IL). AMEX
Assurance is a wholly owned subsidiary of American Express
Company (American Express) [NYSE: AXP]. The outlook of these
Credit Ratings (ratings) is stable.
The ratings reflect AMEX Assurance’s strong capital position and
five-year trend of operating income generated by providing
insurance products to American Express card members. Offsetting
these positive rating factors is AMEX Assurance’s limited business
scope with the majority of its products confined primarily to
American Express card members and the lack of growth in
policyholders’ surplus over the past five years. This is due to all
of AMEX Assurance’s prior years’ net income being returned to
American Express through stockholder dividends.
AMEX Assurance’s strong capital position is reflective of its
conservative investment risk profile, generally favorable reserve
development and favorable operating results driven by solid profit
margins. The favorable operating results reflect the company’s low
cost, direct marketing strategy and its emphasis on travel-related
and other ancillary insurance coverages offered primarily to
American Express card members.
This press release relates to Credit Ratings 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. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20160919006434/en/
A.M. BestKevin Dorsey, +1 908-439-2200, ext.
5401Senior Financial
Analystkevin.dorsey@ambest.comorChristopher Sharkey, +1
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorRichard Attanasio,
+1 908-439-2200, ext. 5432Vice
Presidentrichard.attanasio@ambest.comorJim Peavy, +1
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
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