A.M. Best Co. has upgraded the financial strength rating of Pacific Pioneer Insurance Co. to “B++” from “B+,” and issuer credit rating to “bbb” from “bbb-.” The outlook for both ratings is stable, according to the rating agency.
A.M. Best said the rating actions reflect the Cypress, Calif.-based company’s “solid risk-adjusted capitalization, consistent operating earnings and local market expertise. The positive attributes reflect the company’s focused underwriting and claims management, which has produced favorable operating results, despite the significant reduction in its commercial multi-peril line of business in California.”
Positive ratings factors are somewhat offset, however by “challenging market conditions in the commercial multi-peril line of business and Pacific Pioneer’s concentrated business risk with a somewhat limited geographic spread that exposes it to additional competitive pressures, regualtory changes and judicial decisions,” A.M. Best added.
Pacific Pioneer is licensed in 12 states: California, Colorado, Idaho, Kansas, Louisiana, Nevada, New Jersey, Oklahoma, Oregon, Texas, Utah and Washington.
Source: A.M. Best
Topics AM Best
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