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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 03, 2018 08:26 AM (EDT)
A.M. Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to “a-” from “a” of 21st Century Security Insurance Company (21st Century Security), following its acquisition by High Point Preferred Insurance Company, a subsidiary of Palisades Safety and Insurance Association (PSIA), on Aug. 1, 2018. PSIA is a reciprocal insurance exchange that is managed by its attorney-in-fact, Plymouth Rock Management Company of New Jersey. Additionally, A.M. Best has placed these Credit Ratings (ratings) under review with negative implications. All companies are headquartered in Red Bank, NJ.
The ratings reflect 21st Century Security’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The downgrade and negative implications status reflects 21st Century Security’s new ownership structure and A.M. Best’s need to assess the strategic and financial plans for the company. A.M. Best expects to resolve the under review status of the ratings following more in-depth discussions with the company’s management team.
This press release relates to Credit Ratings 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. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.