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 Pillar Insurance Ltd. (Pillar) (Cayman Islands). The outlook assigned to both ratings is stable.
The assigned ratings reflect Pillar’s supportive risk-adjusted capitalization, above average historical operating results, and the inherent benefits of being a niche cooperative insurer, which lends to its strong risk awareness, extensive loss control and ability to effectively serve its membership. The company also benefits from its low cost, direct distribution system and stable membership. Offsetting these positive rating factors are the company’s limited market profile as it provides coverage to a specific population of customers relating to the agricultural industry within a limited number of states and its level annual growth in members’ equity. The outlook is based on A.M. Best’s expectation of the company’s ability to maintain its strong financial position and sound operating fundamentals.
Positive rating impact could occur if additional capital is infused, thus improving the company’s risk-adjusted capital position. Negative rating impact could occur if underwriting performance diminishes or loss events exceed expected maximum loss estimates impacting negatively on capitalization over time. Additionally, negative rating impact could occur if there is a material shift in the risk profile or business profile that could potentially undermine the company’s stability and profitability. Furthermore, negative rating impact could occur if there are significant changes and turnover in the company’s management team or risk management controls and tolerances.
This press release relates to rating(s) 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.
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