A.M. Best has affirmed the financial strength rating of “A+ (Superior)” and the issuer credit rating of “aa” of Nestlé captive Intercona Re.
The ratings reflect Intercona’s importance to Nestlé and its high level of integration within the group’s risk management function.
The captive benefits from Nestlé’s financial strength and is a key part of its parent’s overall risk management framework, assisting with the mitigation of risk exposures and loss prevention, according to A.M. Best.
The captive has maintained strong underwriting performance despite incurring a number of large losses in recent years, as demonstrated by its five-year average combined ratio of 81 percent.
Intercona’s operating performance, meanwhile, continues to be tempered by volatile investment results owing to the effect of exchange rate fluctuations and adverse movements in the global financial.
