Wednesday, 30 May 2012

.M. Best Upgrades Ratings of Pacific Indemnity Insurance Company

CONTACTS: 
 
Raymond Thomson, ARM
Senior Financial Analyst
(908) 439-2200, ext. 5621
raymond.thomson@ambest.com
Richard Attanasio
Vice President
(908) 439-2200, ext. 5432
richard.attanasio@ambest.com


Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com
  
 

  

  FOR IMMEDIATE RELEASE
 
  

  OLDWICK, N.J., MAY 30, 2012
A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to “a-” from “bbb+” of Pacific Indemnity Insurance Company (Pacific Indemnity) (Guam). The outlook for both ratings has been revised to stable from positive.
The rating upgrades reflect Pacific Indemnity’s continued profitable underwriting performance, with favorable trends in surplus appreciation, resulting in a solid risk-adjusted capital position. Although the company is subject to potential natural catastrophes, it continues to prudently manage these risks through exercising cautious underwriting controls and loss mitigation strategies, as well as maintaining an extensive catastrophe reinsurance program. The company has managed to maintain premium levels despite more difficult localized economic and competitive market conditions. The rating upgrades also reflect that Pacific Indemnity will continue to produce profitable results and maintain its solid risk-adjusted capital position, even in future periods with more prevalent typhoon and seismic activity.
Downward rating pressure could occur if catastrophic weather, seismic events or other increased loss patterns should lead to a deterioration in Pacific Indemnity’s underwriting performance and significant decline in risk-adjusted capitalization.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies” and “Understanding BCAR for Property/Casualty Insurers.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. 

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