Press Release - SEPTEMBER 13, 2017
A.M. Best Affirms Credit Ratings of AMEX Assurance Company
| ||Janet Hernandez |
Senior Financial Analyst
+1 908 439 2200, ext. 5767
+1 908 439 2200, ext. 5432
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 13, 2017
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) (Itasca, 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 positive operating income generated by providing insurance products to American Express card members. Offsetting these positive rating factors are the company’s somewhat limited business scope, as a majority of its products are confined primarily to American Express, and lack of growth in surplus levels, as all of the company’s prior year’s net income has been returned to its parent, American Express, through stockholder dividends.
AMEX Assurance’s strong capital position reflects its conservative investment risk profile, generally favorable loss reserve development, trend of profitable operating results driven by solid profit margins, and strong liquidity measures. 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 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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.