A.M. Best Downgrades Ratings of Park Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has downgraded the financial strength rating to B- (Fair) from B+ (Good) and issuer credit rating to “bb-” from “bbb-” of Park Insurance Company (Park) (New York, NY). The outlook for both ratings has been revised to negative from stable.

The ratings are based on Park’s rapid premium growth over the past year. Park’s capitalization is modest as net premiums have grown excessively compared to its surplus. Other negative factors are the limited geographic scope and operating volatility associated with the ramp-up of the company.

Partially offsetting these negative rating factors are a management team with strong niche market expertise and solid working relationships with agents and accounts. Park provides commercial auto and general liability coverage on a per occurrence basis to accounts involved in the commercial transportation and ready mix concrete business.

Park has a solid risk management program in place, in which drivers must meet strict requirements, including drug testing and Department of Motor Vehicles record checks. As a component of the risk management program, Park requires each vehicle to be inspected and meet strict criteria prior to accepting the account. The drivers are considered professionals and remain with the companies for the long term, resulting in low turnover rates.

Park has implemented the required technology platform enabling it to quote, bind and issue policies.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.