Press Release - DECEMBER 02, 2019
AM Best Upgrades Credit Ratings of Petroleum Marketers Management Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 02, 2019
The ratings reflect PMMIC’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. PMMIC’s niche market focuses on the underground storage tank (UST) and above ground storage tank (AST) pollution liability market.
The ratings upgrade reflects PMMIC’s continued improvement in balance sheet strength, particularly in the favorable reserve development trends from its large loss portfolio transfer with the Iowa Underground Storage Tank State Fund. This development, coupled with continued favorable underwriting/operating returns, has continued to aid the company’s risk-adjusted capitalization levels. In recent years, the company has been able to return a significant amount of capital to investors through share repurchases, due to its already elevated capital position.
The ratings also recognize management’s long experience in the UST and AST businesses and its prudent business plans over the near term. PMMIC’s operating ratios, which have outperformed the industry composite, reflect its strict underwriting guidelines, with an emphasis on loss control, beneficial cost structure due to its management contract with its affiliated management companies, R&A Risk Professionals, Inc. and TankSpec, LLC., as well as tank inspection and monitoring efforts.
This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.