A.M. Best Places The Proformance Insurance Co. Under Review with Negative Implications

December 14, 2004

A.M. Best Co. has placed the financial strength rating of B (Fair) of The Proformance Insurance Company (Proformance) (Freehold, N.J.) under review with negative implications.

This action reflects the deterioration of Proformance’s risk-adjusted capitalization through the first nine months of 2004 to below a level supportive of its rating.

The deterioration was driven by $9.6 million in adverse loss reserve development that resulted in a decline in surplus.

The company’s parent, National Atlantic Holdings Corporation, is projecting the completion of an initial public offering for January 2005, with a portion of the proceeds expected to be contributed to Proformance. Successful execution of the public offering and the subsequent capital contribution to Proformance would result in risk-adjusted capitalization supportive of its current rating.

However, failure to successfully execute the public offering and subsequent capital contribution to Proformance would likely result in a downgrade of its rating.

Topics AM Best

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  • April 26, 2012 at 3:47 pm
    Hope says:
    Prof and their employees in their entirety worked tirelessly to maintain excellence. Any negative experiences would have been had at any insurance company--not just Proforman... read more
  • June 7, 2005 at 7:22 am
    GERRY ANTHONY says:
    THIS IS BY NO MEANS THE WORST PROBLEM BEING EXPERIENCED BY PROFORMANCE INSURANCE COMPANY IN FREEHOLD, NJ. POLLING THEIR POLICY HOLDERS WILL REVEAL ONE ASPECT OF HOW THEY DO B... read more
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    mike conte says:
    IT IS AMAZING THAT NJDOBI ALLOWED MET AUTO & HOME TO DUMP THEIR HOME AND AUTO BOOK TO THIS CARRIER. IT IS REALLY NOT A SURPRISE TO THE MANY AGENTS WHO HAVE SEEN THE CONTINUED ... read more

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