A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit rating (ICR) of “a” of AMEX Assurance Company (AMEX Assurance) (Chicago, IL). AMEX Assurance is a wholly owned subsidiary of American Express Company (American Express) (New York, NY). The outlook for both ratings is stable.

These ratings reflect AMEX Assurance’s strong capital position and continued favorable earnings generated by the historically profitable credit card and travel related business that it has been writing on a direct basis since having been reacquired by American Express. Due to AMEX Assurance’s low-cost direct marketing strategy and favorable loss ratios, it has generated significant net underwriting income, which has been the main driver in solid overall earnings.

Partially offsetting these positive rating factors is the company’s limited business scope, as almost all of its products are available only to American Express cardholders.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts:
Bob Podolski, 908-439-2200, ext. 5731
bob.podolski@ambest.com
or
Joseph Burtone, 908-439-2200, ext. 5125
joseph.burtone@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com