Press Release - SEPTEMBER 21, 2016
A.M. Best Affirms Credit Ratings of Philadelphia Insurance Companies’ Members
| ||Robert Raber |
Senior Financial Analyst
+1 908 439 2200, ext. 5696
Gregory T. Williams
+1 908 439 2200, ext. 5815
Manager, Public Relations
+1 908 439 2200, ext. 5159
Assistant Vice President, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 21, 2016
A.M. Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of Philadelphia Indemnity Insurance Company and its affiliate, Tokio Marine Specialty Insurance Company (both headquartered in Bala Cynwyd, PA), which operate under a pooling agreement, collectively referred to as Philadelphia Insurance Companies (Philadelphia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect the group’s superior operating profitability, strong capitalization and excellent market presence within the specialty commercial marketplace. The ratings also recognize the unique position of the group within Tokio Marine Holdings, Inc. (TMHD) and its 100% ownership by Tokio Marine North America, Inc., an insurance holding company subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF). Philadelphia serves a strategic role in supporting the organization’s U.S. strategy.
These positive rating factors are partially offset by the group’s exposures to natural catastrophe and terrorism risks, along with the ongoing moderate growth in top-line premium.
A.M. Best believes that the members of the group are well-positioned at the current ratings level. Negative rating action could result if underwriting and operating performance falls markedly short of expectations along with a decline in the group’s risk-adjusted capitalization, there is any adverse change in the ratings of TMNF, or if there is an unfavorable change in the strategic importance of the group to the ultimate parent.
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.
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