The rating affirmations reflect PICL’s adequate risk-adjusted capitalization, resulting from the company’s moderate underwriting leverage and conservative investments. In addition, actual claims experience during the company’s first three years of operation has been largely consistent with its initial projections.
Partially offsetting these positive rating factors is the high expense ratio, stemming from a small premium base to cover its operating expenditures. Other offsetting rating factors include the company’s narrow product focus and increasing underwriting leverage.

While positive rating actions are unlikely in the near term, a material deviation from the company’s planned underwriting performance may trigger negative rating actions. Furthermore, the ratings may experience downward pressure if there is a material increase in asset risk that causes a significant decline in the company’s risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. 

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.

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