A.M. Best has affirmed the financial strength rating of "A (Excellent)" and the issuer credit rating of "a" for Pinnacle Consortium of Higher Education, a Vermont reciprocal risk retention group.
In addition, A.M. Best has withdrawn the ratings of Genesis Limited, an affiliated Bermudian insurer, as a result of the merger of Genesis into Pinnacle.
According to A.M. Best, the ratings reflect the company's capitalisation, strong operating results and niche market expertise. The positive ratings are also derived from the discontinuation of the Genesis operation and the transfer of all of its assets and liabilities to Pinnacle.
The positive rating factors are partially offset by the company's susceptibility to infrequent but significant losses. A.M. Best believes that this has led to occasional underwriting loss results in recent years.
The company also has a stable but small number of insured members, which limits its risk distribution.
A.M. Best suggests that the ratings could be revised upward if the company's operating performance improves and risk-adjusted capital remains supportive of the ratings.
