AM Best Affirms Credit Ratings of National Guaranty Insurance Company of Vermont

Key Terms

financial strength rating financial

A financial strength rating is an assessment of an organization's overall financial health, indicating how well it can meet its financial commitments. Think of it as a report card that shows whether a company or institution is financially stable and capable of withstanding economic challenges. This rating helps investors gauge the level of risk involved in engaging with or investing in that organization.

long-term issuer credit rating financial

A long-term issuer credit rating is an independent assessment of an organization’s ability to repay its debts over several years, like a report card that summarizes how likely it is to meet loan and bond obligations beyond the short term. Investors use it to judge risk and expected returns: higher ratings usually mean lower borrowing costs and safer bond investments, while lower ratings signal greater default risk, similar to choosing whether to lend money to a careful neighbor or a risky one.

enterprise risk management financial

Enterprise Risk Management is a process companies use to identify, assess, and prepare for potential problems that could disrupt their success, like financial losses or reputation damage. It’s like a safety plan that helps a business stay strong and adapt quickly when unexpected challenges come up. This helps the company protect its future and keep running smoothly.

captive insurance company financial

A captive insurance company is an insurer created and owned by a business or group to cover its own risks rather than buying policies from outside insurers. Think of it like a company setting up an internal insurance fund to pay for accidents or losses the way a household might keep an emergency savings account, which can lower long-term costs, give more control over claims and pricing, and affect the owner’s balance sheet and tax profile—factors investors watch closely.

non-admitted insurer regulatory

An insurer that is not licensed (admitted) to sell policies in a particular state but is allowed to provide coverage there under special rules, often through the ‘surplus lines’ market. Think of it like buying a specialized product from an out-of-state vendor: the insurer can offer coverage that admitted carriers won’t, but policy terms, state-backed guarantees, and consumer protections may be limited, which can affect claim recoveries and counterparty risk for investors.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of National Guaranty Insurance Company of Vermont (NGIC) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect NGIC’s balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The ratings also acknowledge NGIC’s strategic role as the captive insurance company of Waste Management, Inc. (WM) [NYSE: WM], one of the leading providers of comprehensive waste management environmental services in North America. As a strategic and integral part of WM’s ERM program, it wholly funded the captive’s capitalization in the form of a demand note, and as changes in exposures necessitate, additional supplements have been provided in the form of letters of credit. Furthermore, NGIC benefits from WM’s robust risk management strategies, which enable it to support a portion of WM’s financial assurance program efficiently and appropriately.

Over the last decade, NGIC has remained consistently profitable, with combined ratios that outperformed the industry and its peers by wide margins and excellent return on revenue metrics. In 2025, this trend continued with solid underwriting gains and growing net investment income contributing toward strong overall earnings. AM Best expects that NGIC will continue to produce favorable operating results prospectively, driven by the organization’s extensive loss controls, which have resulted in a loss-free history for the captive.

NGIC has a limited business profile, is licensed in two states and operates in 27 states as a non-admitted insurer to meet financial assurance obligations of WM. The captive’s ERM is considered appropriate, with a developed framework in place and risk management capabilities that are in line with the company’s risk profile.

The stable outlook reflects AM Best's expectation that NGIC will sustain its current level of operating profitability and continue to outperform peers while maintaining its very strong balance sheet strength assessment.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260716133425/en/

Sebastian Caballero
Financial Analyst
+1 908 882 1680
sebastian.caballero@ambest.com

Connor Brach, CFA, FRM
Associate Director
+1 908 882 1668
connor.brach@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

Source: AM Best