OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to Pacific Lighthouse Re LLC (PLRL) (Salt Lake City, UT). The outlook assigned to both ratings is stable.
The ratings for PLRL are based on its excellent risk-adjusted capitalization, history of positive operating performance and effective management of exposures. In addition, the ratings recognize management’s disciplined underwriting philosophy and sound enterprise risk management practices. Historically, PLRL has developed a focused portfolio of products that capitalizes on its core competencies, including effective management of exposures and conservative underwriting practices, and it has enabled the company to consistently deliver a solid operating performance. Based on the existing capital within PLRL and its new property/casualty and life reinsured businesses that began in January 2014, A.M. Best expects that the company’s capital position will remain favorable following the significant growth in its premiums.
Along with the strengths of PLRL, A.M. Best recognizes there is residual risk with the company’s parent, AAA Northern California, Nevada & Utah (AAA NCNU) with respect to operations, geographical concentration and profitability of the parent.
Although the outlook for PLRL’s ratings is stable and the ratings are not expected to be upgraded nor its outlook revised within the next 12-24 months, A.M. Best could downgrade the ratings and/or revise the outlook if unexpectedly large losses materially impact the company’s capitalization on a risk-adjusted basis.
A.M. 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.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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