AM Best Revises Outlooks to Stable for Members of Philadelphia Contributionship Group
2024年6月18日 - 11:42PM
ビジネスワイヤ(英語)
AM Best has revised the outlooks to stable from negative
and affirmed the Financial Strength Rating of A- (Excellent) and
the Long-Term Issuer Credit Ratings of “a-” (Excellent) of
Germantown Insurance Company, The Philadelphia Contributionship
Insurance Company and The Philadelphia Contributionship for the
Insurance of Houses from Loss by Fire, Inc., which are members of
the Philadelphia Contributionship Group (the Contributionship). All
companies are domiciled in Philadelphia, PA.
The Credit Ratings (ratings) reflect the Contributionship’s
balance sheet strength, which AM Best assesses as very strong, as
well as its marginal operating performance, neutral business
profile and appropriate enterprise risk management.
The stable outlooks reflect several corrective actions taken to
refine the Contributionship’s business profile, which, as a result,
have gained traction and reduced severity in operating results over
the past few years. Recent actions include aggressive rate
increases, insurance to value measures, coastal mitigation
strategies and comprehensive agency management efforts. Pricing
sophistication has been enhanced further through predictive
modeling and use of third-party data. Management diligently
reviewed and redefined its distribution partnerships in an effort
to align values and goals, which resulted in a considerable
reduction to agents representing the group. Efforts to improve the
underlying risks of the portfolio support the neutral business
profile assessment, which also reflects the organization’s
well-established presence within the Mid-Atlantic region having a
niche focus on underserved urban and surrounding suburban
markets.
Additionally, the stable outlooks reflect AM Best’s expectation
that the Contributionship will maintain very strong overall balance
sheet strength supported by the strongest level of risk-adjusted
capitalization, as measured by Best’s Capital Adequacy Ratio
(BCAR), and sustained improvement in operating performance as
compared with older years. Performance is expected to report
moderate volatility given the group’s significant property exposure
that subjects results to weather-related events and severe fire
losses, partially mitigated by a prudent reinsurance program.
Despite such volatility, the level of severity has dampened since
2019 due to management’s ongoing initiatives.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best's
Credit Ratings. For information on the proper use of Best’s Credit
Ratings, Best’s Performance Assessments, Best’s Preliminary Credit
Assessments and AM Best press releases, please view Guide to Proper
Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240618448929/en/
Maurice Thomas Senior Financial Analyst +1 908
882 2392 maurice.thomas@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Christopher Draghi Director +1 908 882 1749
chris.draghi@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com