A.M. Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Thousand Oaks, Calif.-based Pacific Compensation Insurance Co.
The outlook assigned to these Credit Ratings (ratings) is stable, A.M. Best stated.
Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of the members of CopperPoint Mutual Group. The outlook of these ratings is stable.
The rating actions follow confirmation that CopperPoint Mutual Insurance Co. in Phoenix, Ariz., the lead member in CopperPoint, has acquired Pacific Compensation Corp. and its wholly owned subsidiary PacificComp from Alleghany Insurance Holdings LLC, a subsidiary of Alleghany Corp.
The ratings reflect PacificComp’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The ratings also reflect the significant explicit support provided by CopperPoint Mutual in terms of capital contributions and reinsurance protection.
PacificComp maintains the strongest level risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio with scores at the 99.6 percent level. Risk-adjusted capitalization benefits from the protection afforded through an adverse development cover and keep well agreement for prior year reserves, as well as the $100 million capital contribution received from CopperPoint Mutual post-transaction close, according to A.M. Best.
The ratings of CopperPoint reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate ERM.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” have been affirmed with a stable outlook for the following members of the CopperPoint Mutual Group:
- CopperPoint Mutual Insurance Co.
- CopperPoint American Insurance Co.
- CopperPoint Casualty Insurance Co.
- CopperPoint General Insurance Co.
- CopperPoint Indemnity Insurance Co.
- CopperPoint National Insurance Co.
- CopperPoint Premier Insurance Co.
- CopperPoint Western Insurance Co.
- MountainPoint Insurance Co.