AM Best


A.M. Best Affirms Ratings of Pacific International Insurance Pty Limited


CONTACTS:

Larina Huang
Associate Financial Analyst
+65-6589-8400, ext. 218
larina.huang@ambest.com

Jason Shum
Financial Analyst
+65-6589-8400, ext. 217
jason.shum@ambest.com

Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

SINGAPORE - APRIL 01, 2015 11:37 AM (EDT)
A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of "bbb" of Pacific International Insurance Pty Limited (Pacific) (Australia). The outlook for both ratings remains stable.

The affirmation reflects Pacific's adequate balance sheet strength, profitable operating results and niche business profile.

Pacific's risk-adjusted capitalization is supportive for its current ratings, as reflected by its Best Capital Adequacy Ratio. The company has increased its capital position by about 40% to A$26 million in the past five years from fiscal year 2009 to fiscal year 2014. In fiscal year 2014, the company continued to deliver favorable earnings. Pacific's overall profitability is expected to continue in the near future.

Pacific sources the vast majority of its premiums from its sister companies, Rapid Solutions Pty Limited and Rapid Training Pty Limited, which provide clients with other specialized value-added services. Pacific holds a distinct competitive advantage from the Rapid group's established brand name and industry expertise in the pest control and building inspection market, enabling the company to exercise superior risk-selection and claims management.

Partially offsetting rating factors include Pacific's small capital base, competitive business environment and high expense ratio. Due to strong competition holding premium rates under pressure in the market, Pacific's premium revenue has been stagnant in recent years.

Pacific is well-placed at its current rating level. Negative rating pressure could occur if Pacific's risk-adjusted capitalization deteriorates materially due to unexpected capital repatriation or its operating performance falls below A.M. Best's expectation due to multiple large claims emerging.

The methodology used in determining these interactive 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:


  • Risk Management and the Rating Process for Insurance Companies

  • Understanding Universal BCAR

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

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 .

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.