AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a+" (Excellent) of AMEX Assurance Company (AMEX Assurance) (Rosemont, IL). The outlook of these Credit Ratings (ratings) is stable. AMEX Assurance is a wholly owned subsidiary of American Express Company (American Express) (NYSE:AXP).

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

AMEX Assurance's balance sheet strength assessment of very strong is supported by risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), consistent reserve redundancies, conservative underwriting leverage metrics and strong liquidity enhanced by steady operating cashflows. Despite the company's annual dividend strategy, which returns the prior year's net income to the parent company, the capital position of AMEX Assurance remains supportive of its overall balance sheet strength.

While the company's combined ratio has trended slightly higher in recent periods, impacted by economic inflationary factors, it remains well below its industry peers with operating performance assessed as very strong. AMEX maintains a strong presence and distribution network within its niche market serving the travel industry. Additionally, AMEX implements an appropriate risk management framework for its size and complexity, centered on risk awareness across the enterprise.

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.

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AM Best Affirms Credit Ratings of AMEX Assurance Company