A.M. Best Co. has upgraded the financial strength rating (FSR) to ‘A++’ (Superior) from ‘A+’ (Superior) and the issuer credit ratings (ICR) to ‘aa+’ from ‘aa’ of Philadelphia Insurance Companies and its members, and has revised its outlook on the ratings to stable from positive.
Best has also affirmed the FSR of ‘A-‘ (Excellent) and ICR of ‘a-‘ of Liberty American Insurance Group, which is based in Pinellas Park, Florida, and its members. The outlook for these ratings is also stable.
All of the companies are subsidiaries of Tokio Marine & Nichido Fire Insurance Co., Ltd., a subsidiary of Japan’s Tokio Marine Holdings, Inc.
The rating actions on Philadelphia reflect its “continuing generation of superior operating results, maintenance of its strong capitalization and excellent market presence as a writer of specialty commercial business,” said Best. The ratings also “acknowledge the group’s excellent operating cash flow, solid liquidity measures and well-developed enterprise risk management (ERM) platform.”
In addition Best pointed out that the ratings of Philadelphia are “partially enhanced by Tokio Marine and Philadelphia’s strategic importance to Tokio Marine’s global expansion in the United States. Additionally, the multi-layered, highly integrated ERM system greatly enhances the information gathering and review processes of the group, which in turn helps inform and drive the ultimate decision-making processes throughout the organization. This disciplined approach and commitment to delivering innovative products and high service levels to niche insurance markets should continue to benefit Philadelphia in the future.
“The rating affirmations of Liberty American recognize its modest underwriting leverage and adequate liquidity, which more than supports the current run off of the group’s personal lines business and the pass-through business written on behalf of the National Flood Insurance Program, a program that is being transferred to Philadelphia Indemnity Insurance Company, Philadelphia’s lead operating company.”
Best summarized the ratings affected as follows:
The FSR has been upgraded to ‘A++’ (Superior) from A+ (Superior) and the ICR to ‘aa+’ from ‘aa’ for Philadelphia Insurance Companies and its following members:
* Philadelphia Indemnity Insurance Company
* Philadelphia Insurance Company
The FSR of ‘A-‘ (Excellent) and ICR of ‘a-‘ have been affirmed for Liberty American Insurance Group and its following members:
* Liberty American Insurance Company
* Liberty American Select Insurance Company
Source: A.M. Best
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