The rating agency also upgraded the long-term issuer credit rating from 'bbb-' to 'bbb'.
AGIC is wholly owned by AES Corporation, a global power company that owns a portfolio of electricity generation and distribution businesses operating in 16 countries.
The rating upgrades reflect AGIC's continued favourable operating trends and adequate risk-adjusted capitalisation, sound risk management capabilities with a focus on sustaining good capitalisation, underwriting performance and conservative balance sheet strategies.
When reviewing the captive’s ratings, A.M. Best considered AGIC’s role as a single-parent captive and the implied support provided by its parent, AES Corporation.
AGIC is a core element of AES Corporation’s overall risk management programme, which utilises the captive as an integral part in this process. AES Corporation continually evaluates the use of AGIC for other risk management objectives of the group as those arise.
Offsetting these positive rating factors is AGIC’s exposure to large losses due to the policy limits offered, its limited market scope and limited business profile being solely dependent on the parent company’s business opportunities for its growth prospects.