A.M. Best has assigned a financial strength rating of “A- (Excellent)” and an issuer credit rating of “a-” to Pacific Lighthouse Re LLC (PLRL).
The ratings for PLRL are based on its risk-adjusted capitalisation, history of positive operating performance and effective management of exposures.
Based on the existing capital within PLRL and its new property/casualty and life-reinsured businesses that began in January 2014, A.M. Best has predicted that the company’s capital position will remain favourable following the significant growth in its premiums.
Along with the strengths of PLRL, A.M. Best recognises there is residual risk with the company’s parent, AAA Northern California, Nevada & Utah, with respect to operations, geographical concentration and profitability of the parent.
Although the outlook for PLRL’s ratings is stable and the ratings are not expected to be upgraded, nor its outlook revised within the next 12 to 24 months, A.M. Best could downgrade the ratings and/or revise the outlook if unexpectedly large losses materially impact the company’s capitalisation on a risk-adjusted basis.
