Press Release - JUNE 04, 2015
A.M. Best Affirms Ratings of Philadelphia Insurance Companies' Members
FOR IMMEDIATE RELEASE
OLDWICK - JUNE 04, 2015
The ratings reflect the group's excellent risk-adjusted capital position, underwriting and operating results favorable to its peers, continuing overall profitability and conservative reserve positions. Additional supporting factors include significant diversification by product and geographic area, the depth and breadth of enterprise risk management programs and policies and a strong relationship with distribution partners. Also supporting the ratings is the group's unique role within Tokio Marine Holdings, Inc. (TMHD) (Tokyo, Japan) and its 100% ownership by Tokio Marine North America, Inc., an insurance holding company subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF) (Tokyo, Japan). This considers operational support provided by TMNF, and Philadelphia's strategic role in the ultimate parent's global strategy.
These positive rating factors are partially offset by the group's exposures to potential natural catastrophe and terrorism losses. In addition, the group's business profile as a specialty risk writer moderates the benefits of diversification, though it provides significant rate and form flexibility.
Positive rating action in the near term is unlikely. Factors that may lead to a negative rating action include a substantial decline in operating performance or loss of risk-adjusted capital from a significant catastrophic loss, or modifications to the pooling agreement. Furthermore, any changes in the rating of the ultimate parent or its commitment to support the operations of Philadelphia will affect the ratings directly.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
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