OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating (FSR) to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “bbb” from “bbb-” for the members of Palisades Group (Palisades) (Berkeley Heights, NJ) and the members of High Point Homeowners Group (High Point) (Red Bank, NJ). These entities are all operating subsidiaries of their parent company, Palisades Safety and Insurance Association. The outlooks of these Credit Ratings (ratings) have been revised to stable from positive. (See below for a detailed listing of the companies.)
The rating upgrades reflect Palisades and High Point’s improved underwriting and operating performance in recent years, which has led to improved risk-adjusted capitalization. The core books of business have shown improvement in performance as a result of underwriting discipline and rate actions. The groups also have benefited from milder weather patterns in recent years.
The rating affirmations reflect each group’s adequate risk-adjusted capitalization, as well as management’s extensive experience and expertise in the New Jersey automobile and homeowners’ insurance markets. The groups utilize several distribution channels to produce business and maintain their market share in New Jersey’s competitive and challenging insurance market. Conversely, as single state writers, Palisades and High Point remain susceptible to frequent and severe localized weather and to economic, judicial and regulatory issues.
The FSR has been upgraded to B++ (Good) from B+ (Good) and the Long-Term ICRs have been upgraded to “bbb” from “bbb-”, with the outlook revised to stable from positive for the following members of the Palisades Group:
- Palisades Safety and Insurance Association
- Palisades Insurance Company
- High Point Property and Casualty Insurance Company
- High Point Safety and Insurance Company
- Twin Lights Insurance Company
- Teachers Auto Insurance Company of New Jersey
The FSR has been upgraded to B++ (Good) from B+ (Good) and the Long-Term ICRs have been upgraded to “bbb” from “bbb-”, with the outlook revised to stable from positive for the following members of the High Point Homeowners Group:
- High Point Preferred Insurance Company
- Palisades Property and Casualty Insurance Company
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.
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