AM Best Revises Outlooks to Positive for Palomar Holdings, Inc. and Its Member Companies
14 Julio 2023 - 8:36AM
Business Wire
AM Best has revised the outlook to positive from stable
and affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of
“bbb-” (Good) of Palomar Holdings, Inc. (Palomar) (Delaware)
[NASDAQ: PLMR], the ultimate parent and insurance holding company
of Palomar Specialty Insurance Company (PSIC) (headquartered in La
Jolla, CA), Palomar Excess and Surplus Insurance Company (PESIC)
(Phoenix, AZ) and Palomar Specialty Reinsurance Company Bermuda
Ltd. (Palomar Re) (Bermuda). Concurrently, AM Best revised the
outlooks to positive from stable and affirmed the Financial
Strength Rating of A- (Excellent) and the Long-Term ICRs of “a-”
(Excellent) of PSIC, PESIC and Palomar Re all members of
Palomar.
The Credit Ratings (ratings) reflect Palomar’s balance sheet
strength, which AM Best assesses as very strong, as well as its
adequate operating performance, limited business profile and
appropriate enterprise risk management (ERM).
These positive outlooks reflect Palomar’s profitable operating
performance in recent periods, which compares favorably to
composite averages. Palomar reported an increase in net income in
each of the last five calendar years, achieving even greater levels
of profitability in 2021 and 2022. Results have been influenced by
favorable underwriting performance as reflected in a five-year
combined ratio average below 90. Management strategically targets
segments that have low attritional loss activity, which lends
itself to comparatively favorable loss experience, offset by an
elevated expense ratio position. Management has been able to
effectively manage its expense position and generate consistent
returns. To support continued profitability, Palomar regularly
reviews its portfolio and has pivoted away from markets that have
either been unprofitable or do not align with its strategic
plans.
Palomar’s overall balance sheet strength is supported by the
strongest level of risk-adjusted capitalization, as measured by
Best’s Capital Adequacy Ratio (BCAR), equity growth in most years,
solid liquidity and positive operating cash flows. While loss
reserve development has been somewhat inconsistent, reported
deficiencies have not had a material impact on results, and in part
relate to lines of business that have been discontinued. The group
has elevated reinsurance dependency, reflective of its catastrophe
exposed risk profile with the strategic use of excess of loss and
quota share arrangements to mitigate potential volatility. Palomar
writes a variety of risks through its admitted and non-admitted
entities, primarily focused on earthquake coverage in California,
as well as hurricane, inland marine, and commercial excess and
surplus all-risk products. Distribution strategies leverage several
channels including retail agents, wholesale brokers, program
administrators and carrier partnerships. While growth has been
significant, an appropriate ERM program has been implemented to
partially mitigate volatility.
This press release relates to Credit Ratings that have been
published on AM 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 AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s
Performance Assessments, Best’s Preliminary Credit Assessments and
AM Best press releases, please view Guide to Proper Use of
Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230714098580/en/
Christopher Draghi Associate Director +1 908
882 1749 chris.draghi@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Richard Attanasio Senior Director +1 908 882
1638 richard.attanasio@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
Palomar (NASDAQ:PLMR)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Palomar (NASDAQ:PLMR)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024