AM Best Assigns Credit Ratings to Mid-Pacific Insurance Company, Inc.
OLDWICK, N.J.--(BUSINESS WIRE)--Dec 19, 2018--AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” to Mid-Pacific Insurance Company, Inc. (MPIC) (Honolulu, HI). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect MPIC’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
MPIC is a single parent captive insurer of Robert’s Hawaii Holdings, Inc. (RHH). RHH is primarily engaged in providing transportation services (tours, transfers, and municipal and school bus services) in Hawaii. MPIC mainly provides commercial auto coverage for its parent’s operations.
The ratings reflect MPIC’s balance sheet strength, strong liquidity position and its long-standing local commercial automobile market presence in Hawaii. These positive rating factors are derived from the company’s low underwriting leverage, as well as management’s focus on providing commercial automobile liability coverage for affiliated companies engaged in Hawaii’s tourism and public transportation business.
MPIC has relatively large retained limits relative to surplus. Furthermore, 2016 operating results have been impacted by adverse prior year reserve development. Company management believes that MPIC has taken initiatives to improve reserve accuracy and strengthen its risk management. AM Best will continue to closely monitor MPIC’s reserve adequacy.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2018 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/20181219005773/en/
CONTACT: Fred Eslami
+1 908 439 2200, ext. 5406
+1 908 439 2200, ext. 5829
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
Copyright Business Wire 2018.
PUB: 12/19/2018 03:45 PM/DISC: 12/19/2018 03:45 PM