AM Best affirms National Guaranty Insurance credit ratings with stable outlook

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AM Best affirms National Guaranty ratings

Highlights

AM Best affirms National Guaranty Insurance Company of Vermont’s credit ratings with a stable outlook due to very strong balance sheet and operating performance.
NGIC’s 2025 outlook features continued underwriting gains and rising net investment income, supporting profitability that outpaces industry and peer averages.
NGIC, as Waste Management's captive, leverages strong parental support, operates in 27 states as a non-admitted insurer, and maintains a developed enterprise risk management framework.

Ratings rationale and 2025 performance

As reported by AM Best, the rating affirmation reflects National Guaranty Insurance Company of Vermont’s very strong balance sheet strength, very strong operating performance, limited business profile and appropriate enterprise risk management.

The insurer serves as the captive insurance company of Waste Management, Inc., and its role within the parent company’s enterprise risk management program remains central to the assessment. Waste Management has fully funded the captive’s capitalization through a demand note and has also provided additional support through letters of credit as exposures change.

Over the last decade, NGIC remains consistently profitable, with combined ratios that outperform both the broader industry and peer companies by wide margins. In 2025, that performance continues through solid underwriting gains and rising net investment income, supporting strong overall earnings.

Operational scope and insurance sector impact

AM Best expects the company to continue generating favorable operating results, supported by extensive loss controls that have produced a loss-free history for the captive. The stable outlook reflects the expectation that NGIC will sustain its current level of profitability, continue outperforming peers and maintain its very strong balance sheet assessment.

NGIC operates with a limited business profile, holding licenses in two states and functioning in 27 states as a non-admitted insurer to meet Waste Management’s financial assurance obligations. Its risk management framework is considered developed and aligned with the company’s risk profile, reinforcing the insurer’s role in the North American waste management and captive insurance sector.

In our earlier article on Fitch’s negative outlook revision for Arizona Electric Power Cooperative (AEPCO) while affirming its 'A' Issuer Default Rating, we explained that rising operating costs and tighter liquidity were pressuring near-term financial flexibility. We also noted that elevated power costs and limited reserves can undermine credit metrics and shape financial planning across regional utilities even when core ratings remain unchanged.

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