OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Pacific Pioneer Insurance Company (PPIC) (Cypress, CA). PPIC is a wholly owned subsidiary of Pacific Pioneer Insurance Group, Inc.
The Credit Rating (rating) actions follow the completion of a stock purchase agreement for a third party to acquire PPIC from Pacific Pioneer Insurance Group, Inc. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in second-quarter 2020.
The ratings will remain under review pending the completion of the transaction and AM Best’s discussions with PPIC’s management. The developing implications are due primarily to the potential of positive or negative rating factors that may result post-acquisition. AM Best will continue to hold discussions with PPIC’s management throughout the process, and will monitor PPIC’s risk-adjusted capitalization, operating performance, business profile and enterprise risk management.
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