AM Best

A.M. Best Affirms Credit Ratings of Philadelphia Insurance Companies’ Members


Robert Raber
Senior Financial Analyst
+1 908 439 2200, ext. 5696

Gregory T. Williams
Senior Director
+1 908 439 2200, ext. 5813

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


OLDWICK - DECEMBER 01, 2017 09:24 AM (EST)
A.M. Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of Philadelphia Indemnity Insurance Company and its affiliate, Tokio Marine Specialty Insurance Company (both headquartered in Bala Cynwyd, PA), which operate under a pooling agreement, collectively referred to as Philadelphia Insurance Companies (Philadelphia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Philadelphia’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its very strong operating performance, favorable business profile and very strong enterprise risk management. The group has recorded very strong operating performance over an extended period, coupled with extensive depth and breadth in its balance sheet driven by the retention of profitability and conservative reserve positions. The ratings also recognize the group’s position as a well-established market leader in specialty markets, exceptionally diversified by jurisdiction, product line, market segment and distribution channel. The ratings also consider the operational, financial and enterprise risk management support provided by Tokio Marine & Nichido Fire Insurance Co., Ltd., which is the lead insurance operating company in the Tokio Marine Holdings, Inc. organization. These factors include day-to-day operational synergies across its U.S. based subsidiaries, reinsurance support and economic capital modeling that is superior to peer companies.

These rating factors are partially offset by the group’s exposure to natural catastrophe and terrorism risk, along with top line growth outpacing peer companies. Nonetheless, the group’s balance sheet capacity has been proven resilient to the pace of premium expansion.

A.M. Best believes that the members of the group are well-positioned at the current rating levels. Factors that could lead to negative rating pressure include underwriting or operating performance falling well below expectations, or an adverse shift in risk-adjusted capital levels.

This press release relates to Credit Ratings 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 see A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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