MPIC assigned Good rating by A.M. Best

A.M. Best has assigned a financial strength rating of B++ (Good) and a long-term issuer credit rating of “bbb+” to Mid-Pacific Insurance Company (MPIC).

The outlook assigned to the Hawaii-based captive’s ratings is stable.

MPIC primarily provides commercial auto coverage for its single parent, Robert’s Hawaii Holdings (RHH), a company which is predominantly engaged in providing transportation services in Hawaii.

The ratings reflect MPIC’s “strong” balance sheet, as well as its adequate operating performance, limited business profile, and appropriate enterprise risk management.

Additionally, they are a reflection of the captive’s strong liquidity position and its long-standing local commercial automobile market presence in Hawaii.

These positive rating factors are a result of MPIC’s low underwriting leverage, as well as its management’s focus on providing commercial automobile liability coverage for affiliated companies engaged in Hawaii’s tourism and public transportation business.

Relative to surplus, the captive has relatively large retained limits, and, furthermore, 2016 operating results have been affected by adverse prior year reserve development.

MPIC’s management believes the captive has taken initiatives to improve reserve accuracy and strengthen its risk management.

A.M. Best concluded that it “will continue to closely monitor MPIC’s reserve adequacy”.